Silver Price Forecast: XAG/USD rises to near $91.00 due to bullish recovery

Silver may find a barrier around the psychological level of $100.00.
Near-term bias is cautiously bullish, with Silver holding above nine- and 50-day EMAs, signaling recovery.
Initial support lies at the rising nine-day EMA near $84.43, followed by the 50-day EMA at $79.94.

Akhtar Faruqui FXStreet

Silver price (XAG/USD) has recovered its recent losses registered in the previous session and is trading around $90.50 per troy ounce during the early European hours on Wednesday. The technical analysis of the daily chart timeframe shows that the 14-day Relative Strength Index (RSI) is around 56 trades above the midline without approaching overbought territory, which supports continued buying interest with room for further gains before momentum looks stretched.

The near-term bias is cautiously bullish as the Silver price holds above both the nine-day and 50-day Exponential Moving Averages (EMAs), signaling a recovery phase after the sharp mid-period sell-off. The short-term EMA has turned higher and diverges from the flatter 50-day gauge, indicating improving upside momentum rather than a mature uptrend.

As long as the Silver price holds above the clustered moving-average supports, the path of least resistance points higher toward the $100.00 region ahead of the record high of $121.66, reached on January 29, where a horizontal line caps the broader topside and would define a major breakout if challenged.

On the downside, the first key support sits near the rising nine-day EMA at $84.43, followed by the 50-day EMA at $79.94. A break below these averages would weaken the structure and expose the support at the two-month low of $64.08, recorded on February 6.

(The technical analysis of this story was written with the help of an AI tool.)

Silver FAQs

Why do people invest in Silver?

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.

Which factors influence Silver prices?

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.

How does industrial demand affect Silver 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.

How do Silver prices react to Gold’s moves?

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

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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