Silver Price Forecasts: XAG/USD picks up, nearing $60.00 with the bearish trend intact
- XAG/USD bounces up in the early European session and hits session highs at $59.62.
- The pair, however, remains trapped within recent ranges, right above year-to-date lows.
- Market volatility remains subdued, with investors awaiting US employment data.
Silver (XAG/USD) trims some losses on Tuesday’s European session opening and hits session highs in the mid-range of the $59.00s, after bouncing at session lows near $56.60. From a wider perspective, however, the precious metal remains depressed near seven-month lows, as markets’ repricing of Federal Reserve rate hikes is acting as a headwind to Silver rallies.
Recent price action shows a nervous consolidation near year-to-date lows. Investors are reluctant to place large directional bets heading into a string of key US macroeconomic releases. Beyond that, a tense calm in the Middle East is keeping traders wary of risk, which leaves the pair looking for direction in a tight range below $60 so far.
Technical Analysis: Key resistance lies at the $61.60 area
XAG/USD has returned above $59.00, with the bearish near-term bias still in play as price holds below the previous 2026 low, in the $61.50 area. Momentum indicators in four-hour charts are showing fading downside pressure. The Relative Strength Index (14) indicator is hovering around the neutral 50 area, and the Moving Average Convergence Divergence (MACD) is turning positive.
Upside attempts, however, remain capped below Friday's highs in the $59.50 area, which is closing the path to the mentioned $61.50 resistance (June 10 low), and the confluence of the trendline resistance from late May highs, with the June 22 peak, right above the $67.00 level.
On the downside, a confirmation below last week's lows in the $55.60-$55.70 area would put sellers back in control and increase pressure toward the October and November 2025 highs in the mid $54.00s range. Further down, the $50.00 psychological level and the November 24, 2025 low, at $48.50, would come into focus.
(The technical analysis of this story was written with the help of an AI tool.)
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
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
