Silver Price Forecast: XAG/USD remains sideways near $68.50, Fed Warsh’s speech awaited
- Silver price remains in a tight range between $67.35 and $70 this week.
- Investors keenly await Fed Warsh’s remarks at the Jackson Hole Symposium.
- Fed’s Warsh could reiterate the central bank’s commitment to bring inflation down to the 2% target.
Silver price (XAG/USD) trades 0.35% higher to near $68.40 during the European trading session on Thursday, but is broadly sideways in a range between $67.35 and $70 this week. The white metal struggles for direction as investors await Federal Reserve (Fed) Chairman Kevin Warsh’s speech at the Jackson Hole Symposium on Friday.
Investors will pay close attention to Fed Chair Warsh’s comments regarding inflation and the United States (US) interest rate outlook.
In the July policy meeting, Fed Chair Warsh didn’t deliver any forward guidance, but stressed that the central bank is committed to bringing inflation down to the central bank’s 2% target.
Financial markets believe that the Fed’s commitment to ease price pressures would be favorable for the US Dollar (USD). Such a scenario could diminish the appeal of non-yielding assets, like Silver. Also, a higher US Dollar makes the Silver price an unfavorable risk-reward bet for investors.
Strategists at OCBC said that the USD could “find support if Warsh and other Fed officials push back against debasement concerns and reaffirm their commitment to returning inflation to the Fed's 2% target,” with the conference seen as a key venue for the Fed to clarify its stance on inflation and policy credibility.
Silver Technical Analysis
In the daily chart, XAG/USD trades at $68.40, keeping a bullish near‑term bias as price holds above the 20‑day Exponential Moving Average (EMA) at $65.34. The metal has extended its advance away from this dynamic support, while the Relative Strength Index (14) around 62 suggests firm upside momentum that is approaching overbought territory but still favors buyers.
On the downside, immediate support is seen at the 20‑day EMA near $65.34, where a pullback could attract fresh bids to maintain the broader upswing. On the topside, with no nearby structural price barriers traced yet, momentum remains the main guide; the elevated RSI reading hints that while the bullish trend persists, upside may become more gradual as the market works through increasingly stretched conditions.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
