Silver price (XAG/USD) is down 0.6% to near $58.00 during the European trading session on Wednesday. The white metal faces slight selling pressure despite traders scaling back hawkish Federal Reserve (Fed) bets, following the release of the United States (US) Consumer Price Index (CPI) data for June.
The CME FedWatch tool shows that the odds of the Fed raising interest rates in the policy meeting this month have eased to 16.6% from 41.7% recorded on Monday.
Theoretically, signs of easing hawkish Fed prospects bode well for non-yielding assets, such as Silver.
On Tuesday, the US CPI report showed that the headline and core inflation decelerated significantly to 3.5% and 2.6% year-on-year (YoY), respectively.
Meanwhile, higher oil prices due to renewed exchange of attacks between the United States (US) and Iran will likely keep the upside in the Silver price limited. Escalated energy prices have de-anchored global inflation projections, a scenario that forces central banks to tighten monetary conditions.
Going forward, investors will focus on the US Producer Price Index (PPI) data for June, which will be published at 12:30 GMT.
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.
Silver prices (XAG/USD) fell on Wednesday, according to FXStreet data. Silver trades at $58.41 per troy ounce, down 0.46% from the $58.68 it cost on Tuesday.
Silver prices have decreased by 17.82% since the beginning of the year.
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 69.04 on Wednesday, broadly unchanged from 69.05 on Tuesday.
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.
Despite a sharper-than-expected decline in US CPI, from 4.2% to 3.5%, the US dollar continues to hold firm above the 100 mark while silver resumes its weakness below $60 as geopolitical risks remain elevated.
Market rebounds across major currency pairs, precious metals, and risk assets continue to face headwinds as the implications of the Middle East conflict extend into the second half of the year. Markets are increasingly being influenced by:
Disruptions to global shipping, with higher transit costs, tolls, and restricted access across parts of the Strait of Hormuz. A cautious second-half outlook from corporate management teams despite stronger-than-expected earnings from major US banks, including JPMorgan and Goldman Sachs, as well as AI semiconductor leader ASML. Crude oil rebounding toward the $80 mark. Precious metals returning to critical bearish breakout zones. From an FX perspective, USD/JPY remains one of the most interesting charts. The pair is trading near levels last seen in the 1980s and could be at risk of another steep bullish breakout toward 170 should the US Dollar Index (DXY) confirm its own breakout above 102.
Across precious metals, both gold and silver are approaching major historical confluence zones:
Gold is testing a 10-year ascending trendline that has transitioned from resistance into support, alongside the 27.2% Fibonacci retracement of the 1920–2026 advance. Full Gold Analysis Silver is testing a breakdown below the 50% Fibonacci retracement of the 1930–2026 advance, while approaching a multi-decade resistance-turned-support zone near $50. I discussed these technical patterns in the latest bi-weekly webinar.
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USD/JPY Price Outlook: 4-Hour Time Frame – Log Scale
Source: TradingView
On the 4-hour chart, USD/JPY continues to coil within a triangle pattern, pointing to growing bullish breakout risks above the 162.40–162.80 resistance zone. A sustained break above this area—and above 163.50—would strengthen the case for an extension toward 165, 168, and eventually 170.
These upside targets align with the 61.8%, 100%, and 127.2% Fibonacci extension levels of the May–June 2026 advance, while also converging with the upper boundary of the ascending channel that has guided price action since April 2025.
On the downside, a confirmed break below 161.10 and 160.80 would expose the lower boundary of the channel near 158. From there, prices could either stage another rebound to preserve the year-long bullish trend or extend losses toward 155 and 152, near the yearly lows. This bearish scenario would likely coincide with a DXY breakdown below the 100.30–99.30 support zone. Expanded Analysis
USD/JPY Price Outlook: Weekly Time Frame – Log Scale
Source: TradingView
The weekly chart highlights the broader one-year ascending parallel channel, with price currently trading near its midpoint. This also aligns with the midpoint of the larger channel that has been in place since 2022, creating a major technical confluence zone.
A sustained move toward 170 remains possible, while a decisive close above 170 would expose the upper boundary of the 2022–2026 channel near 180.
Although this remains an aggressive scenario and would likely increase the probability of Bank of Japan intervention, it cannot be ruled out if the US dollar extends its breakout above 102 without a meaningful policy response from the BOJ.
Silver Price Outlook: Six-Month Time Frame – Log Scale
Source: TradingView
The six-month chart continues to highlight several important long-term technical developments:
A six-month shooting star reversal pattern. A breakdown below the 50% Fibonacci retracement of the 1930–2026 secular advance. Price approaching the multi-decade trendline connecting the highs between 1980 and 2024, which could transition from long-term resistance into major support. This area also aligns with the 61.8% Fibonacci retracement of the entire advance near $46–50. The shorter-term outlook is further clarified on the daily chart below.
Silver Price Outlook: Daily Time Frame – Log Scale
Source: Trading view
From a daily perspective, silver remains capped below a descending trendline connecting the lower highs formed since May 2026. At the same time, daily momentum remains below the neckline of the previous head-and-shoulders pattern, reinforcing the bearish momentum backdrop.
A breakdown below $57 would expose the longer-term support zone discussed above.
Conversely, a breakout above the resistance levels at $61, $63.80, $68, and eventually $72 would significantly increase confidence that a broader bullish reversal is underway, reopening the path toward triple-digit price targets over the longer term.
Key Takeaway The US Dollar Index will remain the primary benchmark for both the FX and precious metals markets as geopolitical tensions continue to evolve.
The 101.80–102.00 resistance zone remains the key level to watch. A confirmed breakout would likely strengthen the US dollar further and increase downside pressure across major currencies and precious metals during the second half of the year.
Conversely, a breakdown below 100.60, followed by 100.30 and 99.30, would ease dollar strength and improve the outlook for currencies and precious metals alike.
Silver’s recovery lost momentum below the $60 mark this week despite softer-than-expected US inflation, highlighting a macro backdrop that has become less supportive than many investors anticipated. Ordinarily, a downside surprise in CPI would trigger a broader Dollar selloff and provide precious metals with a meaningful tailwind. This time, however, the Dollar’s decline proved relatively shallow and uneven, while buying interest in Silver remained subdued. Together, those factors have kept the metal trapped within its recent trading range and preserved a bearish near-term outlook.
The first headwind has been the Dollar itself. Although the Dollar Index initially fell following June’s weaker CPI report, it recovered a meaningful portion of those losses after Federal Reserve Chair Kevin Warsh reaffirmed the Fed’s commitment to restoring price stability while avoiding any dovish policy signals during his congressional testimony. The Dollar’s weakness was also concentrated in a handful of currencies with their own domestic catalysts, particularly the Canadian Dollar, supported by stronger oil prices and a more hawkish Bank of Canada outlook, and the New Zealand Dollar following hawkish comments from RBNZ Chief Economist Paul Conway. Against the Euro, Sterling, Swiss Franc and Yen, Dollar weakness was comparatively modest. Without a broad-based decline in the US currency, Silver has struggled to attract the sustained buying that typically follows softer US inflation.
Muted demand has reinforced that pressure. While positioning data are not yet available to confirm investor behavior, price action suggests opportunistic buying following the CPI release was considerably weaker than in previous episodes of Dollar weakness. The inability to reclaim the $60 level despite an ostensibly supportive inflation report indicates that buyers remain cautious, leaving the metal vulnerable if the Dollar regains strength or Treasury yields move higher again.
Beyond the immediate macro backdrop, Silver also faces a more structural challenge through industrial demand. The market is currently in its sixth consecutive annual supply deficit, but unlike many commodities, higher prices do not necessarily generate a meaningful increase in supply. Around 70% of global Silver production comes as a by-product of copper, lead and zinc mining, meaning output decisions depend primarily on those metals rather than Silver prices. New mine development also typically requires seven to ten years, leaving demand adjustment as the principal mechanism for balancing the market.
That demand adjustment may already be underway. China’s largest solar manufacturer, Longi Green Energy, has begun commercial production using copper-metallized solar cells, reducing reliance on Silver in one of the metal’s fastest-growing industrial applications. Given that the solar sector accounted for roughly 17% of global Silver demand last year, broader adoption of copper metallization could gradually weaken one of Silver’s most important structural demand drivers. The transition is unlikely to transform the market overnight, but it represents a notable shift in the long-term balance between supply and demand.
Technically, the outlook remains bearish while resistance at 63.25 caps upside. A break below 55.59 would resume the broader decline from the record high of 121.83 to o 76.4% retracement of 28.28 to 121.83 at 50.35, which is close to 50 psychological level.
Conversely, sustained break above 63.25 would delay the bearish scenario and extend the corrective rebound toward with another rising leg to 38.2% retracement of 89.37 to 55.59 at 68.49 instead.
Until the Dollar weakens more broadly, however, Silver appears increasingly vulnerable to another leg lower.
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Silver (XAG/USD) ticks lower on Wednesday, trading at $58.50 at the time of writing, after rejection at the $59.00 area on Tuesday. The sour market sentiment amid rising hostilities in Iran continues to weigh on the precious metal, offsetting the positive impact of a weaker US Dollar Index (DXY).
The Dollar extended losses on Tuesday, following a softer-than-expected Consumer Price Index (CPI) report, which cooled market expectations of immediate Federal Reserve (Fed) rate hikes. Fed Chairman Kevin Warsh maintained a hawkish tone in his first congressional testimony, assuring that the central bank will not tolerate persistent inflationary pressures, but he failed to lift the US Dollar.
Risk appetite, on the other hand, remains subdued as tensions escalate in Iran. The US military resumed the blockade of the Strait of Hormuz for Iranian vessels, and US President Donald Trump threatened to target civilian infrastructure, like power plants and bridges. Tehran, in turn, has threatened the closure of other energy routes. Oil prices steadied right below one-month highs, and precious metals pulled back amid the sour market sentiment.
Technical Analysis: Silver threads water below the key $61.00 area
In the four-hour chart, XAG/USD trades at $58.32, holding below the descending trendline resistance from late-May highs. A bullish divergence on the Relative Strength Index (14), which has reached the neutral area near 45, and a slightly positive Moving Average Convergence Divergence (MACD) hint at fading downside momentum, although bullish attempts remain shallow for now.
Bulls should break the confluence of the mentioned trendline and the July 9 highs in the $61.00 area before July's trading top at the $63.30 area to confirm a trend shift. On the downside, initial support is seen at the late June lows around $55.70. A bearish reaction below these levels would expose the 127.2% Fibonacci extension of the late-June sell-off, at $51.40.
(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.
Silver price (XAG/USD) inches lower after registering gains in the previous day, trading around $58.50 per troy ounce during the Asian hours on Wednesday. The price of the non-yielding white metal could rebound as softer-than-expected US inflation data fueled hopes that the US Federal Reserve (Fed) might adopt a less hawkish monetary stance.
The US Consumer Price Index (CPI) inflation eased to 3.5% year-over-year in June, dropping from a three-year high of 4.2% in May and coming in well below the market consensus of 3.8%. On a monthly basis, headline CPI actually declined by 0.4% in June, a notable shift from the 0.5% increase recorded in May.
Meanwhile, Fed Chair Kevin Warsh reiterated the central bank’s commitment to restoring price stability during congressional testimony on Tuesday but refrained from signaling a more aggressive policy stance.
The CME FedWatch Tool indicates that markets are now pricing in a roughly 50% chance of a Federal Reserve rate hike in September. This shift comes as renewed tensions between the US and Iran drive up oil prices, keeping inflation concerns firmly on investors' radars.
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.
Technical Outlook and Geopolitical Pressures The 50-day EMA is drifting lower, and if it were to break down below the 200-day EMA, which it sits just below it, that would kick off a technical death cross, which, longer-term traders will a lot of times read as a very negative sign.
The $57 level has recently offered a bit of support. Breaking down below there could open up a move to the downside, but recently, it looks like the market’s happy just churning in this general vicinity. We do have other headaches to worry about, not the least of which would be announcements and statements coming out of the Middle East, which, of course, have played havoc with the bond market. Silver continues to be very choppy.
XAG/USD gains ground after two days of losses, trading around $58.10 per troy ounce during the European hours on Tuesday. The technical analysis of the daily chart shows that the spot price is remaining within the descending channel pattern. As long as the price continues to fluctuate within the parallel, downward-sloping trendlines, sellers remain firmly in control of the market momentum.
The XAG/USD pair is extending its decline below both the nine-period and 50-period Exponential Moving Averages (EMAs), which keeps the metal under firm bearish pressure. The clustering of short- and medium-term EMAs above price suggests rallies remain corrective within a broader downtrend, while the 14-day Relative Strength Index (RSI) at 37.04 holds below the neutral 50 line, hinting at lingering downside bias rather than outright oversold stress.
The XAG/USD pair may target the immediate support at the seven-month low of $55.63, which was recorded on June 24. Further declines would put downward pressure on the XAG/USD pair to navigate the region around the lower boundary of the descending channel around $46.90.
On the upside, the immediate barrier lies at the nine-day EMA of $59.37, followed by the upper boundary of the descending channel around $60.60. A break above the channel would support the XAG/USD pair to test the 50-day EMA at $66.63.
XAG/USD: Daily Chart(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.
Silver price (XAG/USD) is up 0.75% to near $58 during the European trading session on Tuesday. The white metal holds recovery move seen from below $57.00, earlier in the day, with investors awaiting the United States (US) Consumer Price Index (CPI) data for June, which will be published at 12:30 GMT.
Investors will closely track the US inflation data as the Federal Open Market Committee (FOMC) minutes of the June policy meeting, released last week, showed that policymakers see high inflation as “dominant risk”.
On Monday, Fed Governor Christopher Waller also said that another hot inflation figure would be “signal”, not a noise, about the need to tighten monetary conditions further.
According to estimates, the US headline CPI growth cooled down to 3.8% Year-on-Year (YoY) in June from 4.2% in May, with core figures rising steadily by 2.9%.
Signs of price pressure accelerating further would boost hawkish Federal Reserve (Fed) interest rate expectations, a scenario that bodes poorly for non-yielding assets, such as Silver.
Later in the day, investors will also pay close attention to comments from Federal Reserve (Fed) Chair Kevin Warsh’s first testimony before the US House Financial Services Committee.
On the geopolitical front, surging oil prices due to escalating aggression between the US and Iran, and Washington’s claim for toll fee from ships passing through the Strait of Hormuz would limit the Silver price’s upside.
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.
Silver price remains below $60.00 as the week begins, diving nearly 4% on Monday amid tensions in the Middle East. Hawkish remarks by Federal Reserve (Fed) Governor Christopher Waller underpin the Greenback, which, according to the US Dollar Index (DXY), is up by over 0.28%. The XAG/USD trades at $57.50.
XAG/USD price forecast: Technical outlookThe downtrend in Silver seems poised to continue as the market structure of successive lower highs and lower lows is respected. Also, the XAG/USD is about to breach the July 8 daily low of $57.22, which if achieved would open the path to test the November 13, 2025 high, which has since turned support at $54.39. On further weakness, the next area of interest would be the $50.00 milestone.
Conversely, for a bullish resumption, XAG/USD must clear a key resistance trendline at around $62.25-$62.50, before interrupting the downward market structure if bulls clear the July 6 high at $63.28. If hurdled, this clears the way to challenge $65.00. Once surpassed, Silver could aim toward the $70.00 region.
XAG/USD Price Chart - Daily
Silver daily chart 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.
Silver (XAG/USD) attracts sellers on Monday after renewed fighting between the United States (US) and Iran over the weekend revived energy-driven inflation concerns and reinforced expectations of a Federal Reserve (Fed) interest rate hike later this year.
At the time of writing, XAG/USD trades around $58.30, down more than 2% on the day.
According to the CME FedWatch Tool, traders are currently pricing in a 71% chance of a rate hike in September, up from 57% a week earlier. Higher borrowing costs tend to weigh on non-yielding assets such as Silver.
The US economic calendar is light on Monday, leaving traders focused on geopolitical headlines. Attention then turns to the US Consumer Price Index (CPI) data on Tuesday, which could shape near-term interest rate expectations and drive the next move in XAG/USD.
On the daily chart, XAG/USD remains largely range-bound between $55.50 and $62.50, a structure in place since late June. Silver holds well below the 200-day Simple Moving Average (SMA) at $70.37 and the 100-day SMA at $73.87, keeping the broader bias tilted to the downside.
Momentum remains weak, with the Relative Strength Index (RSI) near 37 staying below the neutral 50 level. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator hovers slightly in positive territory, pointing to a modest loss of selling momentum but falling short of confirming a recovery.
On the upside, initial resistance stands at the upper boundary of the range around $62.50. A clear break above this level could open the door toward the 200-day SMA at $70.37, followed by the 100-day SMA at $73.87.
On the downside, the $55.50 level remains the key support. A decisive break below this floor would end the current consolidation phase and expose Silver to another leg lower.
(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.
Silver is trading under the $60 level, with support at $57 and $50 marked below. Source: TradingView. The silver market has shown itself to be a little bit negative during the early part of the trading session on Monday, as the attacks in the Middle East, of course, are causing some concerns out there when it comes to risk appetite. Keep in mind, though, from a longer-term standpoint, silver most certainly has a lot of demand out there and not enough supply. So, with that being said, I think you’ve got to look at this as a situation where traders are going to look at a lot of concerns in the form of the US dollar and higher rates.
Macro Headwinds Threaten Key Technical Support Boundaries And as long as both of those are strong markets, the rates and the US dollar, that puts a little bit of downward pressure here. If we break down below the $57 level, I suspect it opens up a drop down to the $50 level. If we rally from here, I think those who are looking a little more short-term at the markets will interpret rallies that show signs of exhaustion as selling opportunities.
Silver prices (XAG/USD) fell on Monday, according to FXStreet data. Silver trades at $58.72 per troy ounce, down 1.92% from the $59.87 it cost on Friday.
Silver prices have decreased by 17.40% since the beginning of the year.
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 69.39 on Monday, up from 68.82 on Friday.
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.
Daily Spot Silver (XAG/USD) Spot silver is edging lower early Monday. The price action suggests sellers are eyeing the July 8 main bottom at $57.22 and the June 24 main bottom at $55.60. A trade through these levels will signal a resumption of the downtrend. The main trend will change to up on a trade through the last swing top at $63.28.
Looking at the bigger picture, XAG/USD is currently trading at the upper end of a long-term value zone at $60.835 to $46.48. The short-term retracement zone at $59.44 to $58.53 is currently being tested.
With the main trend down, aggressive counter-trend traders have been trying for two weeks to form a potentially bullish secondary higher bottom. The last attempt is $57.22. If it fails then $55.60 could be retested.
The set-up is pretty simple according to the daily chart formation. Aggressive counter-trend traders have to come in strong enough to form a secondary higher bottom and strong enough to create the upside momentum needed to take out the swing top at $63.28. If they fail to do so then the market becomes vulnerable under $57.22 and $55.60.
Long-term investors may recognize this area as value so we may see stair-step selling instead of sharp plunges.
What to Watch The Middle East escalation is doing the damage indirectly. The oil rally is doing the damage and nothing on the calendar this week fixes it. CPI and PPI both report into a market where crude is already repricing inflation expectations forward, so even a cool number gets discounted before the ink dries. The dollar and yields are both running higher off the Middle East escalation and silver needs at least one of those to reverse. I don’t see where that reversal comes from while the Strait of Hormuz is closed and U.S. strikes continue.
The secondary higher bottom at $57.22 is the counter-trend play that matters. Holding it keeps $63.28 as the trigger for a trend change. Losing it opens $55.60 and the long-term value zone below, where the selling probably slows but the buying has to come from portfolios willing to sit through the rate pressure.
XAG/USD struggles for the second consecutive day, trading around $58.20 per troy ounce during the European hours on Monday. The technical analysis of the daily chart shows that the spot price is remaining within the descending channel pattern, suggesting a prevailing bearish bias.
The XAG/USD pair is extending a bearish near-term bias as price holds below both the nine-period and 50-period Exponential Moving Averages (EMAs). The alignment of shorter- and longer-term EMAs above spot suggests rallies remain capped, while the 14-day Relative Strength Index (RSI) near 37 stays in bearish territory, hinting that downside pressure persists despite the recent bounce from the mid-$50s.
The price of the white metal could find immediate support at the seven-month low of $55.63, which was recorded on June 24. Further declines would put downward pressure on the XAG/USD pair to navigate the region around the lower boundary of the descending channel around $47.90.
On the upside, the immediate barrier lies at the nine-day EMA of $59.80, followed by the upper boundary of the descending channel around $60.50. A break above the channel would support the XAG/USD pair to test the 50-day EMA at $67.00.
XAG/USD: Daily Price(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.
Silver price (XAG/USD) extends its gains for the second successive day, trading around $59.00 per troy ounce during the Asian hours on Monday. The price of the non-yielding white metal falls as escalating United States (US)-Iran missile strikes push oil higher, sparking fears of inflation and higher interest rates.
The US Central Command (CENTCOM) launched additional strikes on Sunday evening, aimed at weakening Iran's capability to target civilian vessels navigating the waterway. US forces have hit more than 300 Iranian targets over a three-night span, including 140 on Saturday alone, while Washington and Tehran issued conflicting declarations regarding whether the strait remains open to maritime traffic.
This latest surge in hostilities has effectively reversed a portion of the market losses recorded last week, which had been driven by an interim US-Iran peace agreement that initially fueled expectations of increased Middle Eastern energy supplies. The sudden military escalation has also severely dampened hopes for continued diplomacy. Tehran is now digging in, insisting that Washington must fully honor its previous commitments regarding shipping transit and the normalization of Iranian oil exports before any further negotiations can resume.
The US Consumer Price Index (CPI) inflation data will be published later on Tuesday for further clues on the Federal Reserve's (Fed) policy outlook. The headline CPI is expected to decline by 0.1% MoM in June, while the core CPI is projected to show a rise of 0.3% during the same period.
Markets are currently positioning for the Federal Reserve to deliver one more interest-rate increase before the year concludes. Meanwhile, all eyes will be on Fed Chair Kevin Warsh as he makes his first official appearance before the US Congress this Tuesday.
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.
Silver price retreats on Friday during the North American session, edging down by 0.54%, weighed by high US Treasury yields and a sudden shift in market sentiment, after US President Trump revealed that the ceasefire is “over.” At the time of writing, the XAG/USD trades at $59.66.
XAG/USD Price Forecast: Technical OutlookSilver is downward biased, as the market structure continues to respect the series of lower highs and lower lows. The Relative Strength Index (RSI) remains bearish, below its 50-neutral level and aiming towards oversold territory. Given the reasons mentioned above and geopolitical uncertainty, the XAG/USD’s path of least resistance is downwards.
For a bearish resumption, traders must clear the July 8 daily low of $57.22. Below is the year-to-date (YTD) low of 55.63, set on June 22, as the white metal dropped below the 200-day Simple Moving Average (SMA) since mid-June. A breach of those two levels opens the door to a move towards the November 13, 2025, high-turned-support at $54.30.
On the flip side, Silver can shift neutral if buyers reclaim a downslope resistance trendline drawn from around June highs within the $62.25-$62.50 area. Once hurdled, this opens the door to challenge the 50-day and 200-day SMAs, each at $69.94 and $70.31.
XAG/USD Price Chart — Daily
Silver daily chart 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.
Fundamental Pressures and Technical Boundaries If we get over the 50-week EMA at $64.20, then maybe we have a little bit of a move to the upside, maybe $70 waiting to happen, but as things stand right now from a fundamental standpoint, it makes no sense to put money in a non-yielding asset if you can get elevated rates out of a bond, for example. It’s a risk-free trade or as close to risk-free as it gets.
That being said, in the longer term, I do think that the demand for silver will be part of the story again, but we have to get past the inflation concerns. After all, rates are rising because of inflation, and although some people would expect that to drive the price of silver up, it’s a different type of inflation. It’s not a massive demand; it’s a supply-side problem, not in silver as much as everything. We’re still worried about that stagflation-type issue.
That being said, in the longer term, I do like silver in the sense that there is a major lack of supply for the demand that is still out there. As long as interest rates and inflation concerns are still out there, people jumping in and taking advantage of those higher yields in the bond market, a non-yielding asset like silver is going to struggle. This is especially true with the US dollar strengthening, but when you look at silver against other currencies, it is doing better, which makes a certain amount of sense.
So ultimately, I think we just bounce around here, pay attention to $57. If we break down through there, then it is likely that we really start to sell off. Rallies I do not trust, but if we were to break above the 200-day EMA, then obviously something will have changed, as we can reevaluate the market itself.
Silver price (XAG/USD) surrenders its early gains and slides 0.73% to near $59.50 during the European trading session on Friday. The white metal turns negative amid fears that the next monetary policy move by the Federal Reserve (Fed) will be on the upside.
According to the CME FedWatch tool, the probability of the Fed delivering at least one interest rate hike this year is almost 80%.
Higher interest rates by the Fed bode poorly for non-yielding assets, such as Silver.
Hawkish Fed prospects remain firm amid fears of a prolonged United States (US)-Iran war, a scenario that will keep the energy supply disrupted. According to the Iranian state media, the US forces struck several more locations in coastal Iran.
The longer the aggression between the US and Iran continues, the more likely it is that oil prices will remain higher.
In the last few months, the Silver price underperformed as higher oil prices de-anchored global inflationary pressures.
Meanwhile, a sharp recovery in the US Dollar is also hurting the Silver price. As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades marginally lower to near 100.87. The DXY recovered after revisiting the three-week low of 100.60.
Going forward, investors await the US Consumer Price Index (CPI) data for June, which will be released on Tuesday.
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.
Silver prices (XAG/USD) fell on Friday, according to FXStreet data. Silver trades at $59.47 per troy ounce, down 0.86% from the $59.98 it cost on Thursday.
Silver prices have decreased by 16.34% since the beginning of the year.
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 68.90 on Friday, up from 68.75 on Thursday.
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.
Daily Spot Silver (XAG/USD) Let’s dial it back a notch and talk about the trend. The trend is down according to my swing chart and the moving averages so traders are still in “sell the rally” mode. The last completed swing down was $71.56 to $55.60. The rally to $63.28 stopped just short of its 50% level at $63.58. Three days of selling pressure this week turned $63.28 into a new swing top.
The last completed swing up is $55.60 to $63.28. Its retracement zone at $59.44 to $58.53 is currently being tested. This is our battle ground. Aggressive counter-trend traders may be trying to establish a secondary higher bottom inside this zone. They aren’t trying to pick a bottom. They are trying to establish a new long position because they have a lean or an exit under $55.60, in case they are wrong. At the same time, aggressive trend traders are trying to overcome the buyers and push the market lower in an effort to continue the downtrend under the swing bottom at $55.60.
Our entire focus on Friday will be on the price action and order flow around $59.44 to $58.53. It is going to tell us if the buyers or sellers are winning the battle. If the buyers come out ahead then look for new money and shorts to push the market higher through 50% of the all-time high at $60.83, and eventually the swing top at $63.28 and the 50% level at $63.58. If successful, this could create the upside momentum needed to challenge the 50-day MA at $69.95 and the 200-day MA at $70.19.
The bullish scenario will likely fail if sellers regain control and drive the market through $57.22. In this case, momentum will increase to the downside and $55.60 will hit the radar.
The key is the volume. Trend traders don’t really need big volume to continue the move, but counter-trend buyers do.
What to Watch The July 28-29 FOMC meeting is still three weeks away and the market has already priced in a hold. The real fight is September and next week’s CPI is going to tell traders whether the hike probability is justified or overcooked. Treasury yields and the dollar are not coming down unless the inflation data give the committee a reason to stand pat. The rate trade is running silver right now and the bulls are waiting for a catalyst that has not shown up.
The retracement zone at $59.44 to $58.53 is the battleground. A higher bottom inside that zone keeps the door open to the all-time 50% level at $60.83 and eventually the swing top at $63.28. Losing $57.22 breaks the structure and puts $55.60 back in play.
Silver price surged by over 2.70% on Thursday, climbing near $60.00 as US Treasury yields retreated and the US Dollar dove by over 0.12%. At the time of writing, the XAG/USD trades at $59.94, after bouncing off daily lows of $57.59.
XAG/USD Price Forecast: Technical outlookThe downtrend remains intact, with the structure of lower highs and lower lows intact, even though the white metal has bounced off weekly lows below $58.00.
In the short term, momentum favours buyers, as indicated by the Relative Strength Index (RSI), but it remains below the 50-neutral level, suggesting a potential resumption of the downtrend.
If XAG/USD decisively clears the $60.00 figure, a move towards the July 6 swing high is on the cards. Once breached, buyers could challenge a downslope resistance trendline at around $64.70, before launching a strong attack on the confluence of the 50- and 200-day Simple Moving Averages (SMAs) at $70.25
On the flip side, and also the path of least resistance, if Silver drops below the current week’s low of 57.22, it paves the way to test the June 24 cycle low of $55.63. Below this level, the next area of interest would be the November 12, 2025, daily high turned support at $54.39.
XAG/USD Price Chart — Daily
Silver daily chart 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.
Interest Rates and Inflationary Headwinds But really, at this point, I think you have to watch very closely the interest rate markets in the United States. If they continue to rally, I think that ends up being the death of silver, at least in the short term. The $50 level should continue to be important; going back decades, it’s been important, and I don’t see why that would be any different. This could be an excellent entry for longer-term traders, but we will have to wait and see if that opportunity arises.
I would be very interested in buying near that level, assuming that we stabilize. In the short term, though, it just looks like a market that can’t pick up its feet. There are concerns about inflation, and therefore there are concerns about interest rates rising, which works against the value of silver, especially when the US dollar rises in conjunction, which is exactly the play that we’ve seen. I continue to look at any rally in silver with suspicion.
Silver (XAG/USD) is trimming losses on Thursday, and hitting session highs just above $59.00 after bouncing from $57.22 lows on Wednesday. US Dollar’s pullback has given some oxygen to the battered precious metals, although Silver’s broader trend remains bearish, after having lost more than $3 so far this week.
The White metal is drawing some support from a weaker US Dollar following the release of the Federal Reserve’s (Fed) minutes. The central bank maintained its commitment to fight inflationary pressures, but a split market committee has left investors pondering the timing of the next interest rate hikes.
Furthermore, Iran and the US have exchanged attacks for the second consecutive day, but comments from US President Donald Trump affirming that Iran “wants to make a deal so badly” suggest that Washington and Tehran will return to the negotiating table.
Technical Analysis: Key resistance is at the $62.50 area
XAG/USD trades at $59.13, retaining a bearish near-term bias as it holds halfway through the last two weeks' range, following a nearly 35% sell-off in less than two months. The four-hour Relative Strength Index (14) at 45.32 sits in neutral territory, while the Moving Average Convergence Divergence (MACD) remains negative, hinting that downside momentum is still in play.
On the downside, initial support is seen at the June 24 and 26 lows, at the $55.60-$55.70 area. Further down, the 127.2% Fibonacci retracement of the late June drop, at $51.40, and the late November 2025 lows at $48.64 emerge as the next targets.
On the topside, bulls would need to reclaim Wednesday's highs at $61.00 and the July 6 high in the $62.50 area to ease immediate pressure. In that case, the mid-June highs near $71.75 will come into focus.
(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.
Silver prices (XAG/USD) rose on Thursday, according to FXStreet data. Silver trades at $59.17 per troy ounce, up 1.45% from the $58.32 it cost on Wednesday.
Silver prices have decreased by 16.76% since the beginning of the year.
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 69.44 on Thursday, down from 69.89 on Wednesday.
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.
Silver price (XAG/USD) is up over 1% to near $59.00 during the European trading session on Thursday. The white metal gains as the US Dollar (USD) faces selling pressure despite multiple tailwinds.
At press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.25% lower to near 100.80.
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the New Zealand Dollar.
USDEURGBPJPYCADAUDNZDCHFUSD-0.24%-0.28%-0.18%-0.10%-0.18%-0.58%-0.33%EUR0.24%-0.04%0.04%0.13%0.09%-0.31%-0.09%GBP0.28%0.04%0.07%0.17%0.12%-0.27%-0.04%JPY0.18%-0.04%-0.07%0.07%0.05%-0.38%-0.13%CAD0.10%-0.13%-0.17%-0.07%-0.04%-0.44%-0.21%AUD0.18%-0.09%-0.12%-0.05%0.04%-0.39%-0.17%NZD0.58%0.31%0.27%0.38%0.44%0.39%0.23%CHF0.33%0.09%0.04%0.13%0.21%0.17%-0.23% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Technically, a lower US Dollar makes the Silver price a favorable risk-reward bet for investors.
The US Dollar struggles to get support despite renewed high United States (US) inflation concerns amid the restart of the war in the Middle East.
Rising oil prices due to the exchange of attacks between the US and Iran, and strikes on Iranian infrastructure have refreshed global upside inflation risks.
In the FOMC minutes of the June policy meeting, released on Wednesday, the bottom line was that policymakers see inflation as dominant risk and favored monetary tightening moving ahead.
Going forward, the next major trigger for the US Dollar will be the US Consumer Price Index (CPI) data for June, which will be released on Tuesday.
Silver technical analysis
XAG/USD trades higher at around $59; however, it retains a bearish near-term bias as spot holds beneath the 20-day exponential moving average (EMA) at $62.38. The downside tilt is reinforced by the Relative Strength Index (14) hovering around 37, which stays below the neutral 50 line but above oversold territory, suggesting persistent selling pressure without capitulation.
On the topside, initial resistance is the round-level of $60.00, followed by the 20-day EMA at $62.38. Looking down, the Silver price could enter a fresh downside leg if it declines below the June 24 low at $55.63.
(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.
Silver price (XAG/USD) inches higher after three days of losses, trading around $58.30 per troy ounce during the Asian hours on Thursday. The price of non-yielding white metal could drop even further as renewed tensions between the United States (US) and Iran are sparking fears of energy-driven inflation, which will likely push the Federal Reserve to keep interest rates higher for longer to bring prices down.
The US President Donald Trump stated on Wednesday that an interim agreement to end the conflict with Iran was officially "over," stoking concerns that a renewal of war could again drive inflation and push up interest rates. Trump also threatened a second day of airstrikes and vowed to reimpose a US naval blockade in retaliation for recent attacks on oil tankers transiting the Strait of Hormuz.
The minutes of the Fed’s June 16-17 meeting released Wednesday showed that a few policymakers said there was a case for hiking rates, though they ultimately supported the decision to leave rates on hold. The minutes reflected growing concern among Fed officials over inflation just as worries about the labor market slightly receded. Swap traders are now pricing the likelihood of a rate hike at the next Fed meeting at more than 30%, up from less than 20% last Thursday, according to the CME FedWatch 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.
The new short-term range is $55.60 to $63.28. Inside this range is the $59.44 to $58.53 retracement zone. Holding this zone will indicate that aggressive counter-trend buyers are trying to establish support. If they fail, we’re likely to see a test of the main bottom at $55.60. If they are successful, then buyers will make another run at $63.28. Take out this level and the short-term trend changes to up with the focus shifting to the 200-day moving average at $70.06 and the 50-day moving average at $70.53.
The longer-term picture is all about value. But this is mostly for the silver investor, not the silver trader. Long-term investors see a major value zone at $60.83 to $46.48. It’s a wide range, but that’s what you get when your all-time high is $120.67. The longer-term investor has the time to build a position inside the support zone.
The problem is, he’s playing against the short-term trader. If the short-term trader can establish a new support base like I wrote about earlier, then with the help of the long-term investor, there’s hope for an upside breakout over $63.28.
From both the short-term trader and the long-term investor, the 200-day MA at $70.06 and the 50-day MA at $70.53 could be a problem. Not only are they potential resistance, but also a major barrier to the uptrend. This area has to be cleared to get the institutional bullish traders on the same side as the retail bull and the long-term investor.
The real test is whether all three groups line up. The long-term investor is buying value. The short-term trader is looking for a base. Institutional money needs both of them to clear the moving averages before it commits. Until that happens, Spot Silver consolidates between $55.60 and $63.28.
What to Watch Brent above $79 is the number that matters for Spot Silver right now. The Iran ceasefire is dead, the Strait is getting worse, and every dollar crude adds from here feeds the inflation repricing that crushed the post-payrolls longs on Wednesday. A pullback in oil gives silver room to breathe but the June FOMC minutes already told traders the committee is closer to hiking than cutting. That does not expire with one quiet day in the Persian Gulf.
The $59.44 to $58.53 retracement zone is where the bulls either prove they have real money or give it up. Hold it and $63.28 comes back into play. Lose it and the next stop is $55.60.
Silver prices collapse nearly 2.50% on Wednesday as risk aversion drives traders towards buying the US Dollar, to the detriment of precious metals. At the time of writing, the XAG/USD trades at $58.41 after waking at around $61.03.
XAG/USD Price Forecast: Technical outlookSilver is still downward biased, extending the series of successive lower highs and lower lows, besides its trading below the 200-day Simple Moving Average (SMA) at $70.19.
The Relative Strength Index (RSI) is bearishly biased as the index approaches oversold territory.
For a bearish continuation, if XAG/USD dives below the June 30 daily low of $56.61, this clears the path towards $55.79, the June 26 swing low. Below this level, the next area of interest is the November 13, 2025, daily low-turned-support at $54.39, ahead of the $50.00 figure.
On the upside, buyers must clear the latest cycle high of $63.28, the July 6 high, followed by the June 22 daily peak at $67.17, ahead of the $70.00 figure.
XAG/USD Price Chart - Daily
Silver daily chart 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.
Silver (XAG/USD) extends its decline on Wednesday and trades around $58.45 at the time of writing. The white metal remains under pressure after comments from US President Donald Trump revived concerns about renewed conflict in the Middle East, supporting the US Dollar (USD) and US Treasury yields.
Donald Trump said that the memorandum of understanding aimed at ending the conflict with Iran is now "over," adding that he no longer wants to negotiate with Tehran. He also stated on Wednesday that the United States (US) could launch new strikes against Iran as early as tonight, saying a deal is not necessary and raising the possibility of targeting strategic infrastructure, including the country's electricity grid, water treatment facilities and Kharg Island, Iran's main Oil export terminal.
This renewed escalation has increased concerns about disruptions to global Oil supplies, with the Strait of Hormuz remaining at the center of market attention. Higher energy prices are reviving inflation expectations, which could increase the Federal Reserve's (Fed) room to tighten monetary policy and therefore weigh on non-yielding assets such as Silver.
Investors are now turning their attention to the release of the Fed June meeting Minutes, which could provide fresh guidance on the monetary policy outlook. Markets will assess whether policymakers remain willing to cut interest rates despite the risk that higher energy prices could sustain inflationary pressures.
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.
Obviously, that is a bigger move and would take a little bit of pressure, but really, at this point, all it would take is some type of headline to make that happen. Short-term rallies, I think, continue to be sold into. I don’t like silver at the moment. I love silver longer term, but I think we’re going to revisit that $50 level. This is an area that I think will have a lot of headlines attached to it, and therefore makes for an interesting buying opportunity, at least in theory.
Imminent Death Cross Threatens Silver Outlook That is an area that’s been important for decades; I just don’t see how the market ignores it based on its previous action. We are getting ready to get the 50-day EMA crossing below the 200-day EMA, kicking off the so-called Death Cross. That will bring longer-term traders involved in it as well. With that being said, I am a bit hesitant to buy. I don’t necessarily want to sell right here into support, but I do think it’s probably more likely than not to find a reason to go lower in this kind of environment. I have no real interest in buying at the moment.
The silver market has struggled again during the trading session on Wednesday, as we continue to see a bit of trouble in this area, as rates climb, and uncertainty prevails.
Silver recently reversed from the resistance zone between the key resistance level 62.60 (former strong support from February and June), 20-day moving average and the 50% Fibonacci correction of the downward impulse from June.
The downward reversal from this resistance area continues the active short-term impulse wave C which belongs to the ABC correction (2) from February.
Silver can be expected to fall further to the next support level 55.00 (which stopped earlier downward impulse at the end of June).
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Silver prices (XAG/USD) fell on Wednesday, according to FXStreet data. Silver trades at $58.56 per troy ounce, down 2.34% from the $59.97 it cost on Tuesday.
Silver prices have decreased by 17.61% since the beginning of the year.
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 69.27 on Wednesday, up from 68.47 on Tuesday.
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.
Silver price (XAG/USD) extends its losses for the third consecutive day, trading around $58.30 per troy ounce during the European hours on Wednesday. The non-yielding white metal struggled as renewed Middle East escalations threatened the interim United States (US)-Iran peace deal. The conflict drove oil prices higher, stoking fresh inflation fears and raising the prospect of higher interest rates, which further weighed on the non-interest-bearing asset.
The tentative ceasefire between the US and Iran has officially collapsed after US President Donald Trump declared the truce finished during the annual NATO summit in Ankara. Sitting alongside NATO Secretary General Mark Rutte, Trump stated that he considers the agreement over, calling it "just a waste of time" and raising the immediate prospect of renewed military conflict between the two nations. The breakdown in diplomacy was immediately followed by economic action, as the US revoked a critical sanctions waiver that had previously permitted Iran to sell crude oil on global markets.
This sudden re-escalation has rapidly injected volatility into the energy sector, as the hostile environment discourages regional producers and commercial shipowners from navigating the Strait of Hormuz. With shipping companies actively avoiding the volatile chokepoint, concerns are mounting over severe, renewed disruptions to the global energy supply.
Meanwhile, financial and commodity markets are balancing these geopolitical anxieties against upcoming macroeconomic data, as traders look to the minutes of the Federal Reserve’s June meeting for clues on interest rates. While silver had recently rebounded on the back of softer-than-expected US jobs data, which prompted investors to scale back expectations for near-term Fed rate hikes, the sudden conflict in the Middle East has clouded the horizon, leaving the broader policy and market outlook highly uncertain.
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.
Silver (XAG/USD) trades with a negative bias for the third straight day and hovers around the $59.80 region during the Asian session on Wednesday. The white metal, however, defends a support marked by the lower boundary of a short-term descending channel, around mid-$59.00s or the weekly low, touched on Tuesday.
Looking at the broader picture, the downward-sloping channel constitutes the formation of a bearish flag against the backdrop of the recent decline. Moreover, the recent repeated failures near the 100-period Simple Moving Average (SMA) on the 4-hour chart suggest that the path of least resistance for the XAG/USD pair is to the downside.
Adding to this, the latest Moving Average Convergence Divergence (MACD) reading at -0.33 and a Relative Strength Index (RSI) around 44.16 hint at the risk of further downside within the range. However, a convincing break below the channel support is needed to reaffirm the negative bias and back the case for any further depreciation.
The XAG/USD might then weaken below the $59.00 mark, towards testing the next relevant support near the $58.35-$58.30 zone and the $58.00 mark. The downward trajectory could extend further towards the $57.25 region en route to the $57.00 mark and the year-to-date low, around the $55.70 area, touched in June.
On the topside, initial resistance appears at the 100-period SMA at $62.32, with a break above exposing the upper channel line at $64.21 as the next hurdle. Only a sustained move over these barriers would ease current bearish pressure and pave the way for some meaningful upside in the near term.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
XAG/USD 4-hour chart
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.
Silver (XAG/USD) price tumbles nearly 3% on Tuesday as market mood turns dismal due to heightened tensions in the Middle East, following Iranian attacks on two vessels in the Strait of Hormuz. At the time of writing, XAG/USD trades at $60.26, after peaking at around $62.16.
XAG/USD Price Forecast: Technical outlookSilver remains downward-biased as long as it fails to clear a downward resistance trendline in the $64.00-$65.00 range, which could open the door to further upside.
Nevertheless, bulls are not out of the woods, as another key resistance level remains to be cleared, with the $70.00 psychological level up next, ahead of the crucial 200-day Simple Moving Average (SMA) at $70.13. If these key levels are broken, Silver could rally towards the 50- and 100-day SMAs, each at $70.79 and at $74.64.
On the flip side, it’s worth noting that an ‘evening star’ formed, which opens the door for further downside. If XAG/USD dives below the July 2 daily low of $59.00, this opens the door to challenge the June 30 daily low of $56.61 ahead of the $55.00 psychological level.
XAG/USD Price Chart - Daily
Silver daily chart 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.
Long-term investors, the buy-and-hold type, like this area because it is at or slightly lower than 50% of the all-time high at $121.67, or a bargain, if you’re looking for a retest of that top or even $200 an ounce.
Short-term traders have the most difficult task because they tend to be “hit and run” traders. They tend to work together with the long-term buyer. The latter helps put in the bottom, while the former helps to navigate the short-term barriers in an effort to drive prices higher and away from the support zone.
The first rally off the $55.60 low, reached $63.28. This move was fueled by short-covering. Trader reaction to the 50% to 61.8% retracement of that short-covering rally is what’s going to drive the next major move.
I’m looking for a near-term pullback into $59.44 to $58.53. Trader reaction to this zone will tell me if real buyers are interested in silver at current price levels, or if the market is headed deeper into the low-term value zone.
Remember that long-term buyers aren’t looking for precision. So they can play this game all the way down to $46.48 if they want. They can show support that attracts short-term speculators then turn around a drop prices even lower, buying the very silver that the specs just dumped. So be prepared for some backing-and-filling while the bottom is being formed.
The formation of a support base will be much better for long-term results than just short-covering fueled price spikes. It all starts with whether new money supports the expected pullback into $59.44 to $58.53.
Silver (XAG/USD) extends its decline for a second consecutive day on Tuesday, trading around $60.70 at the time of writing, down 2.21% on the day. The precious metal is giving back part of last week's gains as investors adopt a cautious stance ahead of the release of the Federal Reserve (Fed) meeting minutes.
Higher US Treasury yields continue to reduce the appeal of non-yielding assets, while the US Dollar (USD) remains broadly supported by expectations that the Fed will maintain a restrictive monetary policy. According to the CME FedWatch tool, markets largely expect the Fed to leave interest rates unchanged at its upcoming meeting, and expectations for a rate hike later this year have eased slightly following the latest US labor market data.
Recent US employment indicators continue to point to a gradual slowdown in the labor market. Job growth has recently fallen short of expectations, but the data has done little to alter the Fed's broader policy outlook. Fed of New York President John Williams said that labor market risks remain balanced and that inflation is still too high.
On the geopolitical front, tensions in the Middle East remain elevated. Reports of attacks on commercial vessels in the Strait of Hormuz continue to fuel concerns about global energy supplies. The situation is supporting Oil prices and reviving inflation concerns, a backdrop that is generally unfavorable for precious metals that are sensitive to interest rate expectations.
Investors will now turn their full attention to the Federal Open Market Committee (FOMC) meeting minutes due on Wednesday. The minutes could provide fresh insight into the future path of monetary policy and help determine the next directional move for Silver prices.
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.
Currency Pressures and Supply Deficits The US dollar remains fairly strong, and as long as that’s the case, I think silver probably struggles. Typically, there is a negative correlation over the longer term. Speaking of the longer term, I am bullish on silver eventually, but I also recognize that the market is trying to simply find a reason to go higher, and the lack of supply eventually will be a major factor, as there isn’t enough silver to satiate demand over the longer-term.
Right now, though, it looks like we’re focusing more on the US dollar and, of course, interest rates. As things stand right now, I’m still somewhat bearish on signs of exhaustion in the silver market, at least until the bond market starts to attract buying, to push rates lower again.
Silver prices (XAG/USD) fell on Tuesday, according to FXStreet data. Silver trades at $60.95 per troy ounce, down 1.79% from the $62.06 it cost on Monday.
Silver prices have decreased by 14.26% since the beginning of the year.
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 67.75 on Tuesday, up from 67.11 on Monday.
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.
Silver (XAG/USD) pulled lower from Monday’s peak and is testing levels below $61.00 at the time of writing, paring some of last week’s gains. A more cautious stance towards the US-Iran peace deal has offset the positive impact of fading hopes of further Federal Reserve rate hikes, posing moderate pressure on precious metals on Tuesday.
Some verbal escalation between the US and Iran has clouded hopes of a swift end to the conflict and soured market sentiment this week. On Tuesday, Iran’s Foreign Minister Abbas Araghchi warned that negotiations on a final deal will not begin if threats continue following comments from US President Donald Trump, who affirmed that the US will reach an agreement or “finish the job” in Iran.
Meanwhile, reports of an attack on an Oil tanker on the Strait of Hormuz have heightened concerns, pushing investors’ enthusiasm about the lessening chances of immediate Federal Reserve (Fed) rate hikes to the background.
Technical Indicators: XAG/USD is turning bearish again
XAG/USD trades at $61.16, with momentum indicators entering bearish territory again, following Monday's rejection at the $63.30 area. The Relative Strength Index (14) on the four-hour chart is flirting with the 50 midline, while the Moving Average Convergence Divergence (MACD) dipped below zero and points to waning bullish pressure.
A clear break below the $60.40 session low would expose the 2026 lows between $55.70 and $56.70, which held bears last week. On the topside, initial resistance emerges at Monday's high near $63.33. An unlikely reaction above here would bring the June 22 high, at the $67.15 area, to the focus ahead of the mid-June highs, around $71.50.
(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.
Silver price (XAG/USD) is down 1.35% to near $61.00 during the Asian trading session on Tuesday. The white metal extends its correction as oil prices see some buying interest, following headlines that Iran fired at least two missiles at commercial ships transiting through the Strait of Hormuz, a critical chokepoint to almost one-fifth of global energy supply.
Iran’s attack on commercial ships has renewed fears of energy supply disruption, whose impact on global inflation has already been witnessed by market participants in the past few months amid the war between the United States (US)-Israel and Iran.
The Silver price underperformed during the Middle East war, as the increase in inflationary pressures due to rising energy prices prompted fears of interest rate hikes by global central banks.
Higher interest rates bode poorly for non-yielding assets, such as Silver.
Going forward, the major trigger for the Silver price will be the release of the Federal Open Market Committee (FOMC) minutes of the June policy meeting on Wednesday. Investors will pay close attention to FOMC minutes to get fresh cues regarding the Federal Reserve’s (Fed) monetary policy outlook.
In the June policy meeting, the Fed decided to leave interest rates unchanged in the range of 3.50%-3.75% and signaled that the central bank will refrain from delivering forward-looking remarks on policy rates at the current policy juncture.
Silver technical analysis
XAG/USD trades lower at around $61.50, maintaining a bearish near-term bias as spot holds beneath the 20-day exponential moving average (EMA) at $63.35. The downside tone is reinforced by the Relative Strength Index (RSI) hovering near 41, which suggests persistent but not extreme selling pressure as rebounds continue to be capped by the nearby EMA barrier.
On the topside, immediate resistance is located at the 20-day EMA at $63.35, and a sustained break above this level would be needed to ease the current bearish pressure and open the way for a more constructive recovery phase. Looking down, the psychological level of $60.00 will be the key support zone; below that, the Silver price could revisit the seven-month low of $55.63.
(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.
