Silver prices (XAG/USD) fell on Monday, according to FXStreet data. Silver trades at $68.80 per troy ounce, down 0.25% from the $68.98 it cost on Friday.
Silver prices have decreased by 3.21% 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 67.46 on Monday, up from 66.74 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.
Silver price (XAG/USD) remains stronger for the fourth successive day, trading around $69.00 per troy ounce during the European hours on Monday. Silver price rises as concerns over United States (US) debt management and fiscal sustainability persist.
This market reaction follows the US Treasury Department's pledge to at least double its buybacks of longer-dated government debt to curb surging bond yields. US Treasury Secretary Scott Bessent indicated these buybacks could exceed $4 billion, signaling a strategic effort to demonstrate that elevated yields fail to accurately reflect underlying economic fundamentals.
However, non-yielding Silver could face potential headwinds if energy prices trend upward, which could limit the scope for upcoming interest-rate cuts. Secretary Bessent announced plans to impose unprecedentedly tough sanctions as part of an economic isolation campaign designed to force Iran and its trade partners into compliance. This policy shift threatens further constraints on global energy markets, especially as Iranian oil shipments experience severe disruptions and offers to Chinese buyers fall off amid an ongoing US naval blockade.
Tehran has dismissed the impending sanctions as an ineffective attempt to exert economic pressure, emphasizing decades of experience navigating blockades and building economic resilience. Meanwhile, geopolitical friction around the Strait of Hormuz remains acute, with vessel transit through the critical oil corridor staying well below historical averages.
Fed watchers eye Warsh’s Jackson Hole focus on AI and task forcesAccording to Deutsche Bank, their US economists have published a preview of Fed Chair Warsh’s upcoming Jackson Hole appearance, highlighting the potential for a more thematic address. They note that if Warsh opts for a “big-picture” speech, “then his options include a discussion of the Fed’s task forces he set up, or possibly a speech on AI’s impact on the economy and his thinking,” framing the event as a key opportunity for insight into his broader policy approach.
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) seesaws between tepid gains and minor losses around the $69.00 mark through the Asian session on Monday. The white metal, however, remains within striking distance of a two-month high, around the $70.00 psychological mark touched on Friday, and seems poised to appreciate further.
The XAG/USD holds a near-term bullish bias following last week's breakout above the $66.65-$66.70 horizontal resistance and the 38.2% Fibonacci retracement of the May-July decline. Moreover, the white metal holds above the 200-period Simple Moving Average (SMA) on the 4-hour chart, which, along with positive oscillators, underpins the advance.
The Moving Average Convergence Divergence (MACD) stays marginally positive, hinting that the upward trajectory is still in place but moderating. Furthermore, the Relative Strength Index (RSI) near 66 suggests strong buying pressure, though the approach toward overbought territory could slow the pace of gains.
Hence, a subsequent move up might confront initial resistance at the 50.0% retracement at $71.95, ahead of the 61.8% level at $76.08, with further barriers at the 78.6% retracement at $81.97 and the cycle high at $89.47. On the downside, immediate support is seen at the reclaimed 38.2% Fibo. retracement at $67.81, followed by the 23.6% level at $62.70 and the 200-period SMA at $60.93, while a deeper setback would expose the structural floor anchored around $54.43.
(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.
Daily Spot Silver (XAG/USD) Spot silver finished higher on Friday with enough momentum to put it within striking distance of the June 17 main top at $71.56, but more importantly, the 200-day moving average at $72.03, which controls the long-term term trend. Crossing to the bullish side of this indicator could bring in new institutional investment that could eventually drive the market into the long-term retracement zone at $74.63 to $83.61.
If buyers fail to sustain a move over Friday’s high at $70.02, then we could see a fresh round of profit-taking. Given the $62.56 to $70.02 range, the first downside objective would be its retracement zone at $66.29 to $65.41.
What to Watch The dollar and Treasury yields are the trade. Buyback operations are scheduled to begin in September, and the debt and deficit concerns that pushed Washington into the bond market have not been resolved. Inflation data and Fed commentary are next. If the dollar stays under pressure and yields remain below their recent highs, buyers have room to keep working on the upside.
What analysts at The Gold & Silver Club formally declared in the opening months of the year – “2026 will be the Year of Hard Assets” – has now crystallized into the defining macro theme of the year.
Across global markets, capital is rotating towards scarce, tangible assets at a speed few traders anticipated. Gold has surged from below $4,000 an ounce to around $4,600, while Silver has rocketed from approximately $54 to almost $70 in just weeks.
Copper is challenging record territory. Tin has emerged as one of 2026’s standout metals. Oil remains structurally elevated. Across the Commodity complex, the message is becoming increasingly difficult to ignore:
The hard-asset repricing is accelerating and the next phase could be far more explosive.
The latest catalyst has emerged from the U.S government bond market.
With long-dated Treasury yields reaching levels not seen for almost two decades, the U.S Treasury has moved to expand its liquidity-support buyback programme for longer-duration government debt – effectively increasing its ability to remove bonds from the market when liquidity becomes strained.
This is not quantitative easing. It is not formal yield-curve control.
But markets rarely wait for policy labels.
“The significance is the direction of travel,” says Lars Hansen, Head of Research at The Gold & Silver Club. “The Treasury is signalling that disorderly increases in long-term borrowing costs are becoming increasingly uncomfortable. Gold understands exactly what that potentially means.”
America’s federal debt has now crossed the historic $40 trillion threshold, while the cost of servicing that debt continues to rise.
At the same time, major foreign holders have been reducing their exposure to U.S Treasuries.
That combination creates an increasingly difficult policy dilemma: rising debt, weaker marginal demand and borrowing costs that cannot remain elevated indefinitely without consequences.
The critical question is what happens if long-term yields continue climbing.
Treasury buybacks can improve liquidity. They cannot impose permanent control over the yield curve. Only the Federal Reserve has the balance-sheet capacity to do that on a meaningful scale.
And that is where the Gold market becomes particularly interesting.
“If policymakers are eventually forced towards renewed liquidity creation, financial repression or some form of yield suppression, the implications for Gold and Silver could be enormous,” Hansen says. “The market does not need QE4 to be announced. It only needs to believe the probability is rising.”
That probability is increasingly being reflected in price.
Silver’s recent performance may be the clearest warning that market psychology is changing.
Its move from roughly $54 to almost $70 represents a gain approaching 30% from its recent low – dramatically outperforming most major asset classes.
Because Silver’s investable market is considerably smaller than Gold’s, even modest institutional rotation can create lightning-fast upside acceleration.
“Gold tends to validate the macro regime; Silver monetizes the excitement,” Hansen says. “If Gold clears $4,700 and Silver breaks decisively above $75 – that’s when $100 Silver and $5,000 Gold may stop looking like distant targets and start becoming the market’s next psychological milestones.
Over the past 15 years, The Gold & Silver Club has built a reputation as one of the industry’s most accurate forecasters of major precious metal price trends, a record well documented across leading financial publications and institutional research reports.
The firm’s proprietary models have consistently pinpointed major turning points in both Gold and Silver – earning GSC recognition as a trusted authority among institutional investors and private wealth clients alike.
“The largest gains in secular bull markets are rarely captured by traders who wait until everyone agrees,” Hansen says. “They are captured while the evidence is mounting, but the crowd is still hesitating.”
That may be exactly where Gold and Silver stand today.
The debt burden is accelerating. Bond markets are flashing warnings. Capital is rotating into hard assets. And the next major technical trigger is now within striking distance.
If the breakout arrives, today’s prices could quickly become the levels traders wish they had acted on earlier.
The window to position before the next leg higher will not remain open indefinitely. Once momentum accelerates, hesitation can rapidly turn into chasing.
The question now is no longer whether FOMO will arrive if Gold and Silver break higher. It is whether traders choose to act before it does – or find themselves chasing the market at significantly higher prices.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Crude oil is the other side of the trade. Brent remains elevated after the Iran conflict restricted shipping through the Strait of Hormuz. Washington is preparing new sanctions against Tehran. Higher energy costs are keeping inflation concerns in front of the Fed and the bond market. Crude staying elevated can rebuild the rate-hike argument fast enough to push yields and the dollar higher again. Silver is running on the rate relief. Oil is the force that can take it away.
The Physical Market and the Futures Market Are Both Saying the Same Thing The silver market is heading for a sixth consecutive annual deficit in 2026. The projected shortfall is about 46 million ounces. Global mine output has not kept pace with demand. Most of the world’s silver comes out of the ground as a byproduct of copper, lead, zinc and gold mining. Industrial consumption from electronics and advanced manufacturing continues to pull metal into production lines. The demand is broad and it is steady.
Open interest rose more than 3,000 contracts to about 115,000 through mid-August. Managed-money traders are net long roughly 11,000 contracts. Smaller traders are also long. Commercial hedging increased on the other side as prices moved higher. That is new money entering the trade, not the same summer positions getting recycled.
What to Watch The price cluster at the 200-day moving average near $71.95 and the 50% level at $72.08 is where the rally gets its next test. Gold cleared its own 200-day Friday and is at a three-month high. Silver is approaching the same level with momentum from the physical side. The trailing 50% level at $66.29 is where the market finds out whether pullbacks are still attracting buyers.
Next week’s PCE inflation report and Warsh’s Jackson Hole speech will move yields and the dollar. Those two forces started the silver rally and they can stop it. Crude above $93 Brent is the wildcard that can shift the rate debate back toward tightening before the data even lands. Silver has the deficit, expanding open interest and a dollar at three-month lows heading into the weekend. The bond market decides whether those conditions hold on Monday.
Silver prices rally for the third straight day, up more than 2% and, for the week, gains over 7.40%, as a firm US Dollar is not an excuse for precious metals buyers, who are choosing flight-to-quality over haven demand due to the difficult US fiscal stance. The XAG/USD trades at $69.50, after reaching a high of $70.02.
XAG/USD Price Forecast: Technical OutlookFrom a technical perspective, Silver’s uptrend remains in place, with traders eyeing a breakout above $70.00. Once achieved, they will set their sight on the 200-day Simple Moving Average (SMA) at $72.05. A breach of it would expose the psychologically significant $75.00 level, which becomes the next area of interest.
Momentum stays positive, evidenced by the Relative Strength Index (RSI) staying above 50 and nearing overbought levels.
On the downside, XAG/USD's first support is the 100-day SMA at $68.47. Below lies the August 20 low of $65.64, ahead of challenging the August 19 swing low of $62.19, followed by the 50-day SMA at $61.35.
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.
Technical Resistance and Macro Drivers The US dollar has an inverse correlation to silver most of the time, so it does make a certain amount of sense that we would be watching the greenback at the same time, but also interest rates, because they’re all tied together, obviously, and this could continue to be the story going forward.
Silver’s a little bit different than gold in this type of environment. Gold had at one point in time been falling to interest rates as well, but it now appears that the safety trade is starting to come back into vogue, as well as punishing the US for bond buybacks. We’ll see if that same thing plays through here in silver, as the two assets can heavily influence each other from time to time.
So far it has, but in all fairness, since that announcement, this is the first real challenge of significant technical resistance. It does look bullish, but $70, more likely than not, will end up being important, so I’ll be watching that level for some kind of confirmation, be it bullish or bearish.
Bond Buybacks and Market Catalysts Volume will probably start to drop off late in the day, and interest rates will have their part to play. Interest rates are still high, despite the fact that silver has rallied over the last several days, but they are starting to turn lower, so we’ll see if that plays out over the next day or two.
This is also a reaction to the US dollar being sold off, as the US Treasury is going to do double the bond buyback purchases next month. And that has people thinking quantitative easing. So far, they’re not willing to admit that, so we’ll have to see how that plays out in the future, but the possibility of the market “jumping the gun” is real.
Of course, silver is not necessarily a safety asset, so it’s not going to have all of the same variables as gold. But gold has broken above a major resistance barrier, so we’ll see if that translates over here in the silver market.
Silver (XAG/USD) accelerates its advance on Friday and trades around $69.75 at the time of writing, up 2.41% on the day. The white metal reaches its highest level in two months and is on track for a weekly gain of more than 7%, mainly supported by persistent weakness in the US Dollar (USD).
The main catalyst behind Silver’s rally this week is the United States (US) Department of the Treasury’s surprise announcement of its debt buyback program. The Treasury plans to at least double its purchases of longer-dated government securities in an effort to contain borrowing costs. The decision initially triggered a sharp decline in US Treasury yields and the US Dollar, mechanically increasing the appeal of Dollar-denominated precious metals.
US Treasury yields have since recovered some of their losses, but the rebound has not been enough to halt Silver’s advance. Investors appear more concerned about the longer-term implications of US fiscal policy, including rising government debt, large budget deficits and the possibility that authorities may favor looser financial conditions at the expense of the US currency.
Commerzbank argues that the Treasury’s announcement suggests that US authorities may prefer a weaker Dollar rather than accepting persistently higher long-term interest rates. This perception adds a headwind for the Greenback and continues to support Silver.
The monetary policy outlook provides additional support. Recent US employment and inflation data have reduced expectations of an imminent interest rate hike by the Federal Reserve (Fed). Lower interest rates tend to benefit Silver, which offers no yield, while potentially adding further pressure on the US Dollar.
Investors now turn their attention to the preliminary August S&P Global Purchasing Managers Indices (PMIs). The market consensus expects the Manufacturing PMI to ease slightly to 53.8 from 53.9 in July, while the Services PMI is forecast to decline to 54 from 54.6. Weaker-than-expected figures could increase pressure on the US Dollar and provide further support to Silver.
However, inflation risks remain present. Rising Oil prices linked to tensions in the Middle East could keep US inflation elevated and reignite speculation about a Fed rate rise, bolstering the USD. A sustained rebound in US Treasury yields could also become a headwind for precious metals following their strong recent gains.
XAG/USD technical analysis
In the one-hour chart, XAG/USD trades at $69.83, maintaining a bullish near-term bias as price holds above the upward-sloping trend-line support around $68.03 and comfortably above the 100-period simple moving average (SMA) at $66.02 and the 200-period SMA at $65.56. The clustering of underlying levels at $67.75 and $66.60 reinforces a constructive structure, while the Relative Strength Index (RSI) at 70.05 hints at mildly overbought conditions that could slow the advance rather than immediately reverse it.
On the topside, immediate resistance is located at the psychological $70.00 handle, where a sustained break would open the way for further gains in the short term. On the downside, the first meaningful support emerges at the reclaimed trend-line zone near $68.03, followed by horizontal support at $67.75 and $66.60, with the 100-period SMA at $66.02 and the 200-period SMA at $65.56 providing deeper trend support if corrective pressure extends.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver prices (XAG/USD) rose on Friday, according to FXStreet data. Silver trades at $69.94 per troy ounce, up 2.67% from the $68.12 it cost on Thursday.
Silver prices have decreased by 1.61% 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 65.71 on Friday, down from 66.35 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.
Silver (XAG/USD) rallies for the third consecutive day on Friday, hitting fresh two-month highs above $69.00 in the early European session. The precious metal is on track for a 6.6% weekly rally, as investors run away from the US Dollar following the US Treasury’s announcement of a plan to boost buybacks of long-term securities.
Commerzbank analysts affirm that the US Treasury's plan reveals that “if faced with the choice between accepting higher interest rates or a weaker US dollar, the Treasury would rather see a weak USD.” In their view, this stance adds a structural headwind for the Dollar as investors reassess the balance between rate containment and currency strength.
Technical Analysis: The 200-day SMA, at $72.05, comes into focus
XAG/USD trades firm, at $69.02, holding a bullish structure, with momentum indicators on the daily chart endorsing the upside view. The Relative Strength Index (14) near 65 suggests strong but maturing bullish momentum, while the Moving Average Convergence Divergence (MACD) indicator remains in positive territory, hinting that upside attempts could persist.
Bulls are likely to meet some resistance at the $70.00 psychological level, although key resistance lies in the area between the mid-June highs, at $ 71.56, and the 200-day Simple Moving Average (SMA) at $72.05.
On the downside, the previous resistance area around $67.20 (June 22 high) is likely to porvide some support in case of a bearish reversal. Below here, the next targets would be the August 18 low, in the $63.20 area, and the August 5 and 6 lows around $61.00.
(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.
On 19 August, the US Treasury announced that it would double the volume of long-term government bond buybacks. The measure led to a noticeable decline in yields at the longer end of the curve and forms part of the Treasury’s broader efforts to contain pressure on long-term borrowing costs. These efforts include market interventions and calls for the Federal Reserve to expand the limits of the FIMA repo facility.
Lower Treasury yields improve the relative appeal of precious metals, which do not generate interest income, providing direct support for silver. Industrial demand is another important factor. Chinese imports of silver-containing ores rose 62.5% year-on-year in June amid expanding production of solar panels and power-grid equipment.
Technical Analysis of Silver
Since 17 July, XAG/USD has been moving within a pronounced uptrend on the four-hour chart. In the upper portion of this advance, a pattern resembling a broadening triangle emerged in mid-August. Unlike a conventional triangle, its boundaries widened rather than converged, reflecting increasing volatility during the consolidation phase.
On 20 August, the price broke above the formation and continued to hold above the current market profile. The breakout candle was accompanied by a noticeable increase in vertical volume compared with the preceding consolidation bars, adding some confirmation to the move.
Following the breakout, silver moved above the profile’s upper boundary at $66.58. If the bullish momentum persists, the next major upside reference is the red resistance level at $69.74.
A return inside the profile would shift attention to the cluster of two important levels: the Point of Control (POC) at $65.165 and the lower profile boundary at $64.345. Their proximity makes this area particularly important for the short-term outlook. If sellers push the price through this cluster, the next potential support could be found around the green level at $62.700.
The RSI + MAs indicator currently shows readings of 66, 56 and 56. The oscillator is trading above the neutral zone, while both moving averages remain below its upper boundary and are only beginning to approach a potential breakout.
Key Takeaways The breakout above the broadening triangle on increased volume initially points towards further upside, but maintaining prices above the market profile will require additional confirmation.
The $66.58 level is therefore likely to remain important in the near term: holding above it would favour continuation towards $69.74, while a return below the profile could bring the 65.165–64.345 area back into focus.
The broader outlook will also remain sensitive to the direction of US Treasury yields. A continued decline in yields could provide further support for silver, while a renewed rise in long-term yields could limit the metal’s upside.
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Silver price (XAG/USD) extends its gains for the third successive day, trading around $68.70 per troy ounce during the Asian hours on Friday. Silver prices rise as investors turn to safe-haven metals amid heightened volatility across global currency and bond markets.
Silver price is up nearly 6% this week after the US Treasury Department announced plans to at least double its long-term debt buybacks. This move aimed to contain borrowing costs, driving Treasury yields and the dollar sharply lower. Silver continued its upward momentum even after yields reversed Wednesday’s decline, fueled by concerns that government efforts to rein in long-term borrowing costs may only offer a temporary fix.
US yields rebound as Dollar slide extends after Treasury buyback moveBrown Brothers Harriman’s Elias Haddad observes that “US long-term Treasury yields have retraced most of Wednesday's drop triggered by the US Treasury’s buyback announcement, while USD has extended its decline.” He frames the buyback initiative as a debt-management exercise that has largely unwound the initial move in longer-dated yields even as the Dollar continues to soften, underscoring lingering market unease around the policy signal embedded in the Treasury’s action.
However, further gains for non-yielding Silver could be capped by rising oil prices, which continue to highlight persistent inflationary risks and boost expectations for interest rate hikes. These energy market pressures stem from escalating tensions between the United States (US) and Iran over control of the crucial Strait of Hormuz.
Oil supply fears persist as Iran tensions keep crude flows tightAccording to TD Securities, the backdrop for crude remains constrained, with “negotiations on hold for weeks and a shift toward economic pressure” reinforcing the view that “crude flows in the market will remain critically tight.” The bank also warns that “Iranian aggression in the Oman lane will likely remain the norm,” underscoring ongoing geopolitical risks that continue to support a structurally tight oil market.
Washington is preparing to severely restrict Iran's economy in an initiative labeled an "economic D-day," with formal details expected on Monday. The proposed US measures seek to sever Tehran's access to global commercial and financial networks by targeting banks, shipping registries, cash transfers, and smuggling operations to force negotiations over its nuclear program and regional transit.
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 extended its gains on Thursday, up more than 1.70%, even as US yields recovered some ground and then resumed their rise following the US Treasury bond buyback announcement. The XAG/USD trades at $68.18 at the time of writing.
XAG/USD Price Forecast: Technical OutlookThe uptrend remains intact in the short-term, with the white metal approaching the 100-day Simple Moving Average (SMA) at $68.51. Momentum remains bullish, as indicated by the Relative Strength Index (RSI), which is above its 50-neutral level and approaching overbought territory.
To cement the bullish bias, XAG/USD must reclaim the 100-day SMA. Once done, the next resistance is the $70.00 milestone, ahead of the 200-day SMA, which is seen as the next ceiling level at $71.97. If buyers clear that level, the psychologically significant $75.00 level becomes the next area of interest.
On the flip side, the XAG/USD first support is the low of the day (LOD) at $65.64. Below, the next support is the August 19 swing low of $62.19, followed by the 50-day SMA at $61.35.
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.
Daily Spot Gold (XAU/USD) Gold was lower on the session after profit-taking hit a 4% rally. Silver kept running. The two metals are not trading the same story right now.
Gold made its move Wednesday and ran into the 200-day moving average. Traders took profits as yields recovered. Silver was still working through its own breakout, pressing above Wednesday’s high at $67.02 and reaching $68.99 before pulling back. The session low at $65.64 attracted buyers early and the market never looked back.
Silver has two sources of demand working at the same time. It trades with precious metals when yields and the dollar move in its favor. It also trades on industrial consumption from electronics, electric vehicles, solar manufacturing and AI data centers. Gold only has the first one. Silver having both is why it held Thursday when gold could not.
The Supply Deficit Is the Floor Under Every Rally The silver market is heading for its sixth consecutive annual deficit. Industry forecasts point to a shortfall of about 46.3 million ounces in 2026.
Mine supply has not responded to higher prices because most silver comes out of the ground as a byproduct of copper, lead and zinc production. A mine operator does not change a development plan because silver moved higher. Recycling brings some metal back. It does not fill the gap.
Ultimately, this is a market that has been consolidating for quite some time after a recent breakout, and now it looks as if we are trying to do what we can to continue going higher. The momentum is driven at the moment by Treasury buybacks, and the falling US dollar; rates rising is a bit counterintuitive, but stress could have positive effects as well.
Rounding Bottom Pattern The $70 level above will attract a lot of attention as a large, round, psychologically significant figure and an area that’s been important a couple of times in the past. With that, it’s likely that traders are eyeing this market quite interestingly and closely right now, as there is so much going on at the same time.
The technical pattern looks like a rounding bottom. I remain bullish of this market, despite the fact that rates are jumping, because rates are jumping as an anti-U.S. dollar type of trade, which can be fruitful for silver. This market currently is noisy, but the buyers have made a strong statement.
Short-term pullbacks interest me, at least until we break down below the 50-day EMA. At that point in time, I will be looking to see if support holds near $65. This is an area that if it gets broken, could send the market reeling.
Silver prices (XAG/USD) fell on Thursday, according to FXStreet data. Silver trades at $66.71 per troy ounce, down 0.42% from the $67.00 it cost on Wednesday.
Silver prices have decreased by 6.15% 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 67.33 on Thursday, down from 67.51 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) posts a fresh two-month high at $67.33 in the Asian trading session on Thursday. The white metal rallies as long-dated United States (US) Treasury Yields have declined significantly, following the announcement from the Treasury Department on Wednesday that it will double the size of buybacks for long-dated securities.
Such a move would increase the flow of the US Dollar (USD) into the economy, which has also weighed on the currency.
As of writing, 10-year US Treasury Yields trade vulnerably near Wednesday’s low of 4.64%. On Wednesday, 10-year US bond yields declined over 1.5%. 30-year US Treasury Yields are down almost 2% from Tuesday’s closing price to near 5.18%. The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades close to its fresh seven-week low at 98.77.
Lower yields on interest-bearing assets improve the appeal of non-yielding assets, such as Silver.
Meanwhile, the Federal Open Market Committee (FOMC) minutes of the July meeting showed that many board members felt the need for interest rate hikes if inflation remains higher. Theoretically, the scenario bodes poorly for non-yielding assets.
Silver Technical Analysis
XAG/USD trades at $67.10, extending its advance well above the 20-period Exponential Moving Average (EMA) at $63.20 and reinforcing a bullish near-term bias. The metal is supported by the rising EMA, while the Relative Strength Index (RSI) at 61.48 stays in positive territory without yet reaching overbought, suggesting that upside momentum remains constructive but not stretched.
On the downside, immediate support is seen at the recent price pivot near $67.10, followed by firmer dynamic support at the 20-period EMA around $63.20, where buyers would be expected to defend the broader uptrend. Looking up, the white metal could extend its advance to $70.00, followed by the June 16 high at $71.19.
(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.
Daily US Government Bonds 30-Year Yield Treasury will raise the maximum size of its buyback operations from $2 billion to at least $4 billion, targeting the 10- to 30-year sectors. The program begins September 9 and runs through early November. The 30-year yield fell roughly 8 to 10 basis points on the news. The dollar index dropped about 0.7% to 0.8%.
The 30-year had been sitting at a 19-year high. The dollar held firm even as the front end of the curve priced softer data and lower September hike odds. That combination kept sellers in control of silver for three straight sessions. The Treasury announcement hit both at the same time and the reversal was immediate.
Tuesday’s selloff took silver below $64. Monday’s gap lower started the week with a break. Wednesday’s recovery erased both moves in a single afternoon. The speed of the turn says the market was overcrowded on the short side heading into an announcement nobody had positioned for.
The Reversal Started at the 50-Day and Has Not Stopped Silver’s session low at $62.56 came within reach of the 50-day moving average at $61.31 and the 50% level of the all-time high at $60.83. Both held. Aggressive buying turned the market before either level was tested directly.
The $3.50 range from low to high is the kind of move that happens when a market has been leaning too hard in one direction and the catalyst flips. Gold also reversed higher. Both metals had spent the week absorbing pressure from long yields and a firm dollar. When the pressure came off, the buying was not gradual. It was a snap.
Silver (XAG/USD) stabilizes around $63.45 on Wednesday, up 0.16% on the day at the time of writing. The white metal is attempting to regain its footing after hitting an intraday low of $62.19, initially extending the pullback that followed Tuesday’s rejection from the $66.50 area.
Silver remains under pressure in a cautious market environment as investors monitor the deteriorating situation in the Middle East. The Memorandum of Understanding between the United States (US) and Iran expired on Monday, while US President Donald Trump confirmed on Tuesday that no talks with Tehran are currently taking place.
Disruptions to maritime traffic through the Strait of Hormuz are also keeping tensions elevated in the energy market, reinforcing concerns about the conflict's inflationary consequences. This prospect could complicate the task of the Federal Reserve (Fed) and limit its room to tighten monetary policy.
Investors now await the Minutes of the Federal Open Market Committee (FOMC) July meeting, due on Wednesday at 18:00 GMT, for fresh clues about the path of US interest rates.
Since that meeting, weaker-than-expected labor market and inflation data have reduced expectations of a September rate hike. According to the CME FedWatch tool, markets now price in only a 32% chance of an increase at the next meeting. This shift helps limit pressure on precious metals, which tend to benefit from expectations of less restrictive monetary policy.
At the same time, inflation risks stemming from the energy shock continue to support the possibility of further monetary tightening over the longer term. US Treasury yields therefore remain elevated despite a modest decline on Wednesday, limiting the appeal of non-yielding Silver.
The release of the Fed Minutes could therefore provide the next catalyst for Silver as markets assess the balance between softer US economic data, inflation risks stemming from the Middle East conflict and the future path of interest rates.
XAG/USD technical analysisIn the one-hour chart, XAG/USD trades at $63.46, retaining a capped near-term tone as it holds beneath the 100-period simple moving average (SMA) at $64.74 and the 200-period SMA at $64.65. The proximity of the immediate horizontal barrier at $63.50 reinforces overhead supply just above spot, while the Relative Strength Index (RSI) at 44.51 stays below the neutral 50 line, hinting that recovery attempts could remain limited for now.
On the topside, initial resistance is located at $63.50, ahead of the 200-hour SMA at $64.65 and the 100-hour SMA at $64.74, with a stronger hurdle emerging at the prior horizontal cap near $66.80. On the downside, first support appears at $62.60, with a deeper cushion seen at $61.00, where buyers would be expected to show more interest if the current pullback extends.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver has had one of its strongest months in years, but this week’s price action shows just how fragile precious metals rallies can be when bond markets get nervous. The metal surged nearly 10% last week after July’s Non-Farm Payrolls badly missed expectations, printing a loss of 23,000 jobs, prompting markets to price out any chance of a September Fed hike and reviving safe-haven demand.
That momentum reversed on Tuesday, however, with silver dropping toward $64 as global bond yields spiked to multi-year highs on mounting concerns over government spending and persistent inflationary pressures. Rising oil prices added to the unease, keeping inflation risks firmly in focus even as rate-hike expectations continue to fade.
Beneath the volatility, the structural picture remains supportive: silver continues to draw solid demand from the green energy transition, solar panels, electric vehicles, and AI data centre infrastructure, all keeping a floor under prices. All eyes now turn to the Fed’s July meeting minutes and Chair Kevin Warsh’s remarks at Jackson Hole, both expected to offer fresh clues on the path ahead for rates.
Technical Analysis of XAG/USD
As XAG/USD chart shows, silver broke above its descending trendline from June’s highs in early August, a genuine shift after weeks of decline, and has since been holding above the 0.382 Fibonacci retracement near 62.88, right where the 200-period EMA also sits nearby at 62.27. The broader recovery has been building on an ascending trendline off the mid-July lows.
Bullish Scenario
Should buyers defend this 0.382-EMA confluence and push higher, the path would open toward a retest of the 66.73 highs, the 0 Fibonacci level marking the origin of the entire decline. A confirmed break above that zone would signal the correction is fully over.
Bearish Scenario
Conversely, a break below the 0.382 retracement and the ascending trendline would expose the 0.5 level near 61.69, with a deeper slide risking a retest of the 0.618 retracement around 60.49, or even the triangle apex near 56.64 if selling pressure accelerates.
With price sitting right at the intersection of a reclaimed trendline, the 200-period EMA, and a key Fibonacci level, silver looks poised for a decisive move, will this recovery extend toward fresh monthly highs, or does the recent bond market turmoil drag the metal back into its prior range?
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FXOpen is a global Forex and CFD Broker, founded in 2005 by a group of traders. With over 16 years of experience, the company has gained an excellent reputation a major brokerage that continues to expand rapidly. The broker offers a choice of platforms, including the popular MT4 and MT5 platforms, with a wide range of trading instruments with spreads from 0.0 pips: 600+ FX, index, share, commodity and cryptocurrency CFDs. FXOpen also provides its own PAMM technology, allowing clients to benefit from the strategies of experienced traders with a proven track record of successful trading and guarantees automatic distribution of profit and loss between the strategy provider and the strategy followers. CFDs are complex instruments and come with a high risk of losing your money. PAMM is only available in certain jurisdictions. Cryptocurrency CFDs are not available to Retail clients at FXOpen UK.
Silver (XAG/USD) trades lower for the second consecutive day on Wednesday, exploring prices below the $63.00 level at the time of writing, after a reversal from the $66.50 area on Tuesday. Precious metals are struggling as markets turn cautious amid the deterioration in the Middle East crisis, with oil prices consolidating at higher levels.
The Memorandum of Understanding between the US and Iran expired on Monday, and US President Donald Trump confirmed on Tuesday that there are no talks with Tehran at the moment. Sea traffic through the Strait of Hormuz, meanwhile, remains limited to a trickle, which keeps Oil prices on the rise, with Brent Oil at $90 after rallying about 6% over the last three days.
Technical Analysis: Bears are pushing against the $63.30 support area
XAG/USD trades at $63.09, with bears pressing against the support area near the $63.30 level, which is the floor of last week's trading range and a previous resistance area. Intra-day momentum indicators endorse the bearish view, with the 4-hour Relative Strength Index (14) retreating toward the mid-30s, and the Moving Average Convergence Divergence (MACD) treading deeper into negative territory.
A confirmation below the mentioned $63.30 area would shift the focus towards the August 6 low at the $60.90 area, ahead of the late July and early August lows, in the mid-range of the $56.00s.
On the topside, if the pair manages to hold above $60.30, bulls might regain confidence to launch another attack to the resistance area around $67.00 (June 22, August 12 highs) ahead of a key resistance zone between mid-June highs, in the $71.55 area, and the 200-day Simple Moving Average (SMA) at $71.85.
(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.
The short‑term Elliott Wave view in Silver (XAGUSD) indicates that the metal is unfolding an impulsive structure from the July 17 low. From that level, wave ((i)) advanced to $60.93 before a corrective pullback in wave ((ii)) reached $56.54. Following this retracement, the market resumed higher in wave ((iii)), which developed as another impulse of lesser degree. Within this sequence, wave (i) ended at $62.9, while the subsequent dip in wave (ii) found support at $60.85. The rally in wave (iii) extended to $66.47, and the pullback in wave (iv) settled at $64.2. The final leg, wave (v), concluded at $66.8, thereby completing wave ((iii)) at a higher degree.
At present, the market is correcting in wave ((iv)), which is unfolding as a flat Elliott Wave structure. Down from the wave ((iii)) peak, wave (a) ended at $63.47, followed by a rally in wave (b) that reached $66.55. The decline in wave (c) is expected to terminate within the $61.1–$63.2 area. This zone should provide support for another leg higher or at least a three‑wave rally. In the near term, as long as the pivot at $56.6 low remains intact, the pullback is anticipated to complete in either three or seven swings. The overall structure suggests that Silver retains bullish potential once the correction in wave ((iv)) is finished.
The short‑term Elliott Wave view in Silver (XAGUSD) indicates that the metal is unfolding an impulsive structure from the July 17 low. From that level, wave ((i)) advanced to $60.93 before a corrective pullback in wave ((ii)) reached $56.54. Following this retracement, the market resumed higher in wave ((iii)), which developed as another impulse of lesser degree. Within this sequence, wave (i) ended at $62.9, while the subsequent dip in wave (ii) found support at $60.85. The rally in wave (iii) extended to $66.47, and the pullback in wave (iv) settled at $64.2. The final leg, wave (v), concluded at $66.8, thereby completing wave ((iii)) at a higher degree.
At present, the market is correcting in wave ((iv)), which is unfolding as a flat Elliott Wave structure. Down from the wave ((iii)) peak, wave (a) ended at $63.47, followed by a rally in wave (b) that reached $66.55. The decline in wave (c) is expected to terminate within the $61.1–$63.2 area. This zone should provide support for another leg higher or at least a three‑wave rally. In the near term, as long as the pivot at $56.6 low remains intact, the pullback is anticipated to complete in either three or seven swings. The overall structure suggests that Silver retains bullish potential once the correction in wave ((iv)) is finished.
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Daily October Brent Crude Oil Futures Brent crude moved above $91 a barrel Tuesday, its strongest level since late July. WTI also pushed higher. The ceasefire arrangement has ended. Iran has threatened a more offensive posture. The Strait of Hormuz remains restricted and Washington is not extending the deal.
The Middle East risk can put a protective bid under precious metals on the breaks. Tuesday’s trade showed the other side. Higher crude is feeding into inflation expectations and giving bond sellers another reason to hold the long end at these levels. Gasoline remains above $4 per gallon and the next round of price data has a better chance of capturing the recent move in energy costs. The inflation side of the oil trade won on Tuesday.
FOMC Minutes and Jackson Hole Are Keeping Buyers on the Sideline Wednesday’s minutes from the July meeting land with three officials already on record voting for a quarter-point increase. The market cut September hike odds sharply over the past week on softer data. The minutes tell you whether that repricing went too far. Jackson Hole follows next week with policymakers sitting between weaker growth numbers and crude above $91. Silver just reversed $3 off its session high, and neither event is offering buyers a reason to step back in ahead of the data.
What to Watch The 30-year yield at 5.31% is doing the damage. The front end can price a September hold all it wants. Silver is trading the long bond, and the long bond is trading deficits, debt supply and inflation that has not come back to target. Crude above $91 is making that worse by feeding the energy cost story into every forward inflation estimate.
Silver reversed $3 off its session high and is sitting just above a swing bottom that changes the minor trend if it breaks. The 50-day moving average is not far below. FOMC minutes Wednesday and Jackson Hole next week are the events that can reset the rate debate. Until the long bond stops overriding the front end, silver rallies are selling opportunities.
Silver (XAG/USD) edges lower on Tuesday, remaining confined within a week-old trading range as bullish momentum softens following the recent rally. At the time of writing, XAG/USD trades around $63.96, down 2.77% on the day.
Buyers appear reluctant to chase the metal higher as uncertainty around the Federal Reserve’s (Fed) monetary policy path keeps sentiment cautious. Recent weak US economic data have reduced expectations of an imminent Fed rate hike and helped XAG/USD rebound from near $55 at the start of the month.
However, the energy shock caused by tensions in the Middle East keeps inflation risks alive and leaves the possibility of a rate increase later this year on the table. The prospect of higher interest rates weighs on Silver by increasing the opportunity cost of holding non-yielding assets.
Technical Analysis
On the daily chart, XAG/USD retains a mild bullish bias while holding above the 50-day Simple Moving Average (SMA) at $61.28 and several key Fibonacci support levels.
However, momentum indicators point to consolidation. The Relative Strength Index (RSI) near 55 is easing toward neutral, while the fading green bars on the Moving Average Convergence Divergence (MACD) histogram suggest weakening bullish momentum. The Average Directional Index (ADX) near 26 indicates moderate trend strength.
On the downside, initial support is seen at the 38.2% Fibonacci retracement at $62.89, followed by the 50% level at $61.68 converging with the 50-day SMA at $61.28 to form a key demand zone. Below there, the 61.8% retracement at $60.47 and the 78.6% level at $58.76 mark subsequent floors that would come into play on a deeper corrective pullback.
On the topside, a daily close above the 23.6% retracement at $64.38 would open the way toward the structural high at $66.80, with further advances likely to test the 100-day SMA at $68.66 before any challenge of the 200-day SMA at $71.81.
(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.
With rising rates, it does make non-yielding assets like silver a little less attractive, and I also am looking at the US dollar depending on the currency you’re measuring it against. It could be trying to make a little bit of a comeback. That might work against silver as well.
200-Day EMA Barrier and Macro Drivers The next candle that’s impulsive, I think, probably tells the story at this point as we’re just waiting for something. That something is probably the bond market or the situation in the Middle East to gain more clarity, which is something that is lacking at the moment to say the least.
Longer-term, I love silver. I think silver has a bright future ahead of it as the demand for electrification will continue to drive silver higher over the longer term. Same thing with copper. But right now, there are so many other things going on; most traders aren’t worried about the AI trade or the electric trade or the supply and demand. It’s all about interest rates currently, at least that’s how the market’s behaving.
Silver (XAG/USD) declines on Tuesday and trades around $65.00 at the time of writing, down 1.20% on the day. The white metal nevertheless remains trapped within the consolidation range that has dominated trading for about a week, as opposing forces prevent a clear direction from emerging.
The monetary policy outlook in the United States (US) remains one of the main drivers of Silver prices. Recent weaker-than-expected US economic data have prompted investors to scale back expectations of another interest rate hike by the Federal Reserve (Fed) at its September meeting.
Weakness in the US labor market is contributing to this shift in expectations. The latest July Nonfarm Payrolls (NFP) report surprised to the downside, while recent inflation and consumer spending data have also reduced pressure for further monetary tightening.
According to the CME FedWatch Tool, markets now see around a 35% chance of a Fed rate hike in September, down from 47% a month ago. Reduced expectations of higher interest rates tend to support Silver, as lower rates decrease the opportunity cost of holding non-yielding assets.
However, this support is being offset by the sharp rise in energy prices amid persistent tensions between the United States (US) and Iran. The failure to renew the ceasefire agreement and uncertainty surrounding the naval blockade of Iranian ports are fueling concerns over global energy supplies.
Higher Oil prices could therefore reignite inflationary pressures worldwide. Energy-driven inflation could encourage major central banks to keep monetary policy restrictive for longer, or even consider further rate hikes, which would represent a headwind for non-yielding precious metals such as Silver.
At the same time, geopolitical tensions provide some support to the white metal through demand for safe-haven assets. Uncertainty surrounding relations between Washington and Tehran therefore leaves Silver caught between inflation risks stemming from higher energy prices and defensive flows driven by geopolitical tensions.
Investors now turn their attention to the Minutes of the July Federal Open Market Committee (FOMC) meeting, due on Wednesday. The document could provide further insight into how Fed officials assess the balance of risks and their willingness to continue tightening monetary policy following recent signs of a slowdown in the US economy.
Against this backdrop, Silver could remain sensitive to shifts in US interest-rate expectations. A less restrictive tone in the Minutes could weigh on Treasury yields and the US Dollar (USD), potentially supporting the white metal, while persistent inflation concerns could continue to limit its rebound potential.
XAG/USD technical analysisIn the one-hour chart, XAG/USD trades at $65.00, retaining a bearish near-term tone as price has slipped below the 100-hour simple moving average (SMA) at $65.26 while still holding above the 200-hour SMA at $64.47. This positioning suggests the latest pullback is pressuring the short-term trend, with the longer-term average offering interim cushioning. The Relative Strength Index (RSI) at 41.38 stays in mildly bearish territory, hinting at waning upside momentum rather than outright oversold conditions.
On the downside, initial support emerges at the 200-hour SMA around $64.47, followed by a horizontal level near $64.20, before deeper floors at $63.51 and $63.00. On the topside, immediate resistance is seen at the 100-hour SMA at $65.26; a sustained recovery above this barrier would open the way toward the next notable cap at $66.80.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
All this month USD has been getting weaker, and this has helped the price of Gold and Silver.
However, that’s not the whole story.
In today’s Market Outlook, let’s take a look at Forex trading on Gold, XAUUSD, Silver, XAGUSD, GBPUSD, EURGBP, WTI and Brent Crude Oil.
There are 6 reasons that investors are heading to gold as a safe haven:
US fiscal deficits are increasing, and political turmoil isn’t helping.
Treasury supply of T-bills and investors are becoming increasingly nervous about the US bond market.
Inflation, which is a direct result of crazy tariffs and energy costs because of the Iran war.
Geopolitical risk is still high, not just in the Middle East.
Diversification away from US assets is important for many investors for financial and political reasons.
Many central banks are changing their FX reserve holdings from USD and going to other currencies and gold.
Many analysts are eyeing $4,500 soon and $5,000 later in the year.
This may actually get worse after tomorrow’s FOMC, so keep an eye on the economic news.
Also, we see UK CPI tomorrow, so watch your calendars and some News Catalyst Fade moves on GBP pairs.
You will note this huge dip in EURGBP caused by a US Treasury report late last night.
Also, as we saw on the calendar, yesterday’s UK claimant count was positive for GBP, and our indicators caught the point of reversal here.
On other GBP pairs, we see GBPUSD in an uptrend retracing toward the lower trendline, so we will wait to see if our indicators give us confirmation.
And, let’s take a look at Crude Oil.
As we try to follow trends, it becomes difficult with the turmoil between the US and Iran and the very restricted number of ships passing through the Strait of Hormuz.
Also, the latest jump is based on yesterday’s violence in Lebanon, so the price of oil isn’t just being dictated by the war in Iran.
Just keep your eye on the news regarding peace talks and threats of more aggression.
Silver price (XAG/USD) declines after two days of gains, trading around $65.60 per troy ounce during the Asian hours on Tuesday. Silver prices fall as traders remain wary of potential inflation risks as prospects for a new diplomatic agreement between the US and Iran dimmed following statements from both sides.
US President Donald Trump indicated he was not interested in extending the interim peace deal, citing the ongoing naval blockade of Iranian ports as evidence of Washington's leverage and reiterating his proposal to declare the critical waterway as US territory under total American control. Iranian Foreign Ministry spokesman Esmail Baghaei asserted that an agreement remains elusive due to security complexities and the "obstructionist behavior of destructive elements," insisting that the US must first lift its blockade.
However, Silver prices could rebound amid fading expectations for further interest rate hikes by the Federal Reserve (Fed). A recent, unexpected decline in July US Nonfarm Payrolls, combined with last week's modest consumer price inflation data, has significantly reduced market anticipation of a monetary tightening next month.
Consequently, expectations for a Fed rate hike at the upcoming policy meeting have dropped to 35%, down from 47% a month earlier, according to the CME FedWatch Tool. Investors are now looking ahead to the release of the minutes from the Fed’s July meeting.
According to strategists at TD Securities, a confluence of macro factors has driven a notable repositioning in precious metals. They highlight that “the combination of modest inflation, a lackluster U.S. employment environment, little market concern that oil will have another major rally, along with prices moving convincingly into a higher trading range prompted money managers to aggressively increase their long gold exposure.” This backdrop, in their view, has encouraged investors to lean more heavily into Gold as prices establish themselves in a stronger trading band.
Technical Analysis:In the daily chart, XAG/USD trades at $65.60, holding a bullish near-term bias as price remains above both the nine-day and 50-day Exponential Moving Averages (EMAs). The alignment of the shorter EMA above the longer one reinforces a constructive trend tone, while the 14-day Relative Strength Index (RSI) at 60.51 stays in positive territory without yet signaling overbought conditions, suggesting room for further gains as long as the metal holds above these dynamic supports. The Fed Sentiment Index cooling toward 134.61 hints at a less aggressive policy backdrop for Silver.
On the downside, immediate support is located at the nine-day EMA at $64.27, followed by the 50-day EMA at $63.33, with a more distant structural floor at the horizontal line near $55.63. On the topside, the next notable barrier emerges at the horizontal resistance around $90.03, with the current configuration hinting that dips toward the clustered moving averages may attract buyers while that upper cap remains untested.
(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 has experienced a wild ride in 2026, but The Silver Institute President and CEO Michael DiRienzo says investors shouldn’t let the volatility obscure a much bigger story: the underlying silver market remains remarkably strong.
DiRienzo joined Money Metals podcast host Mike Maharrey to discuss silver’s dramatic price swings, persistent supply deficits, industrial demand, solar energy, artificial intelligence, investment flows, and the metal’s expanding role in medicine.
His central message was straightforward. Silver is no longer the $13 or $15 metal investors remember from less than a decade ago. In DiRienzo’s view, the market has established substantially higher floors because silver is increasingly being valued for both its industrial utility and its investment potential.
From $121 Silver back to $65Silver surged to roughly $121 an ounce on January 29, 2026, before falling sharply alongside gold. By the morning of Maharrey’s interview with DiRienzo, silver was trading around $65 per ounce.
DiRienzo said the late-February outbreak of war in Iran put additional pressure on precious metals. Interestingly, he noted that gold and silver have tended to respond positively to announcements involving ceasefires or the reopening of the straits, suggesting the conflict has been weighing on the precious metals complex rather than providing the traditional geopolitical boost investors might expect.
But underneath the geopolitical turmoil, DiRienzo sees strong fundamentals.
He noted that just two years ago, predicting an average 2026 silver price above $72 to $75 per ounce would have sounded extraordinary. Yet the market has reached precisely that neighborhood this year.
Mining companies have also benefited substantially from higher prices. DiRienzo said second-quarter figures being reported by mining companies were broadly positive, including among Silver Institute members producing silver both as a primary product and as a byproduct.
Industrial demand remains a powerful forceIndustrial demand remains one of the most important pillars supporting silver.
The Silver Institute expects a small decline in industrial demand this year, driven in part by reduced silver consumption in photovoltaics. With silver prices elevated, solar manufacturers have an obvious incentive to reduce the amount of silver they use or substitute another material.
Doing so, however, isn't simple.
Silver has the highest electrical conductivity of any metal, and the process of screen-printing silver paste onto solar cells is already mature and highly efficient. Alternative materials and metallization technologies still face hurdles before they can compete with silver at scale.
Copper metallization exists, for example, but DiRienzo said it has yet to scale sufficiently to replace silver across the solar industry. For solar farms designed to operate for 25 years, manufacturers also have to consider silver's reliability, durability, and stability rather than simply its upfront cost.
Solar’s Silver appetite has explodedThe scale of silver consumption in solar has changed dramatically over the past decade.
DiRienzo said solar represented about 11% of total silver industrial demand in 2014. By 2024, its share had climbed to just under 30%, marking the peak year for silver consumption in solar to date.
The industry is now attempting to engineer some silver out of its cells as prices rise. But manufacturers were already trying to reduce silver consumption when the metal traded for only $13 per ounce.
As DiRienzo explained, manufacturers relentlessly pursue even tiny savings. Reducing costs by two, three, or four cents per solar cell can matter when production is measured in enormous volumes.
That means efforts to thrift silver will continue. But DiRienzo doesn't foresee silver disappearing from photovoltaics the way photographic demand largely disappeared with the transition to digital photography.
AI could become another major Silver demand driverArtificial intelligence represents another potentially significant source of future silver demand.
The AI boom requires an enormous physical infrastructure of data centers filled with electrical contacts, wiring, and other components that can use silver.
DiRienzo said data centers have grown by more than 6,000% in just three years. The Silver Institute has already examined silver's role in AI data centers and other emerging technologies in a report on silver as a “next generation metal.”
The precise amount of silver being consumed by AI infrastructure remains difficult to quantify. DiRienzo acknowledged that the Institute is hearing about increased consumption but doesn't yet have firm numbers.
The direction, however, appears clear to him. With AI infrastructure still in its infancy and data-center installations expanding around the world, DiRienzo expects silver demand from this sector to increase.
Higher Gold prices are also affecting jewelrySilver may also be benefiting indirectly from gold's elevated price.
DiRienzo pointed to examples of jewelry made primarily from silver and then plated with gold, providing the appearance of gold while using silver as the underlying metal.
Jewelry demand remains highly price-sensitive because it is fundamentally a discretionary purchase. DiRienzo also highlighted an interesting demographic trend: more women between the ages of 24 and 30 are buying silver jewelry globally.
The Silver Institute expects overall silver jewelry demand this year to remain relatively consistent with last year's level.
Higher prices can't quickly produce more SilverThe supply side of the market presents a very different challenge.
A silver miner can't simply flip a switch and dramatically increase production because prices have risen. DiRienzo noted that some of the mining taking place today traces back to plans made 10 years ago, in 2016.
Mining companies are spending more on exploration, but DiRienzo said they aren't doing so recklessly. Much of the activity appears concentrated around existing projects as companies search for additional or previously unidentified veins.
That means substantially higher silver prices aren't necessarily going to unleash a flood of new supply anytime soon.
Mine production increased about 3% in 2025, but the Silver Institute expects production to decline 0.3% in 2026.
A Sixth consecutive Silver market deficitThe supply constraint becomes particularly important when considered alongside persistent demand.
The Silver Institute expects the silver market to record its sixth consecutive annual structural deficit in 2026. DiRienzo estimated the shortfall at roughly 46 million to 50 million ounces, although it could become larger if demand strengthens.
Recycling will help. The Institute expects recycled silver supply to increase by roughly 7% this year.
It still won't be enough.
Even after incorporating recycling into total supply, DiRienzo expects demand to exceed supply again in 2026.
A market deficit doesn't mean the world has literally run out of silver. It means annual demand is exceeding annual newly available supply, forcing the market to draw on above-ground inventories.
And those inventories aren't necessarily as freely available as headline figures might suggest.
The Silver sitting in vaults isn't necessarily availableDiRienzo used London inventories to illustrate the problem.Suppose London Bullion Market Association vaults contain approximately 750 million ounces of silver. That sounds like an enormous stockpile.
But DiRienzo estimated that roughly 75% of that silver is already allocated to exchange-traded products around the world.
That leaves a much smaller pool of readily available metal — and accessing that remaining “free float” can be extremely price sensitive.
The consequences became apparent when tariff concerns caused silver to move from London and elsewhere into New York ahead of the April 2, 2025, “Liberation Day” tariff announcement.
Precious metals ultimately weren't included in the tariffs, but the episode demonstrated how quickly physical metal can move when market participants anticipate disruptions.
Maharrey pointed to another example closer to home: Money Metals was shipping 1,000-ounce silver bars to India during the tight market around Diwali.
DiRienzo recalled the episode and noted that silver lease rates subsequently surged as the market became extremely tight.
Could similar silver squeezes happen again?
“Absolutely,” DiRienzo said. “No question about it.”
Silver investment demand could strengthenThe Silver Institute also expects stronger retail investment demand for physical silver.
DiRienzo said demand for silver coins and bars could increase approximately 7% in 2026, despite challenges involving Indian import duties. India has been an especially strong market for silver bars and coins over the past several years.
Exchange-traded products tell another part of the investment story.
Silver ETPs recorded net inflows of approximately 270 million ounces in 2025. The outbreak of war subsequently contributed to liquidations in gold and silver ETPs, with DiRienzo saying silver had experienced outflows of roughly 6% this year.
He added that the Silver Institute was hearing that investment activity was beginning to pick up again.
Medicine shows another side of SilverWhen Maharrey asked DiRienzo to name one of silver's lesser-known applications that he finds particularly interesting, DiRienzo pointed to health and medicine.
Silver's antibacterial properties give it uses throughout healthcare environments. DiRienzo cited silver coatings in operating rooms and on operating tables and instruments, along with silver incorporated into hospital drapes and used alongside cleaning agents.
He also highlighted emerging nanotechnology. The Silver Institute's August edition of Silver News was set to examine how nanosilver can help doctors administer the correct drug dosage.
Silver's antibacterial properties extend beyond hospitals. DiRienzo also cited water purification, pools, and efforts to combat outbreaks of Legionnaires' disease. In these applications, silver can help prevent infection and promote healing.
These applications may represent relatively small amounts of silver compared with solar panels, electronics, or investment products, but they demonstrate just how broad the metal's usefulness has become.
From $15 to more than $70Perhaps the most striking way to understand today's silver market is simply to look backward.
During the interview, DiRienzo opened the World Silver Survey and read off a series of historical average prices.
Silver averaged $17.05 per ounce in 2017. It subsequently averaged $15.71, followed by $16.21 in 2019. By 2023, the average had risen to $23.35, followed by $28.27 in 2024 and approximately $40 in 2025.
In 2026, DiRienzo said the market is talking about an average above $70 per ounce.
That longer-term perspective matters after silver's retreat from its January peak.
At around $65 an ounce during the interview, silver was dramatically below its $121 high. But Maharrey emphasized that it wasn't very long ago that investors were accustomed to silver trading for $13, $14, or $15.
DiRienzo believes the difference reflects a fundamental change in the market.
“We think new floors have been set in the market,” he said. Silver, in his assessment, is now trading on the strength of both its industrial applications and its investment appeal.
A tight market with powerful long-term driversSilver's 2026 correction may dominate short-term investor psychology, but the fundamentals DiRienzo described point toward a much larger story.
The market is heading toward a sixth consecutive structural deficit. Mine production is expected to decline slightly. Recycling is increasing, but not enough to close the gap. Physical investment demand could rise 7%. Solar still consumes enormous amounts of silver despite ongoing thrift efforts. AI infrastructure presents another rapidly growing source of potential demand.
Meanwhile, much of the silver sitting above ground isn't necessarily freely available to the market.
DiRienzo believes 2026 is shaping up to be a remarkable year for the metal. He expects the annual average silver price to set a record, and he sees evidence that the market has established price floors far above those of the previous decade.
Silver may still be volatile. But in DiRienzo's view, today's silver market is fundamentally different from the one investors knew when the metal traded in the teens.
And those fundamentals — industrial demand on one side and investment demand on the other — could continue defining the silver market long after the geopolitical turbulence of 2026 has passed.
Silver price surges nearly 1.80% on Monday as the Greenback dives, while uncertainty over the US-Iran conflict clouds investor sentiment. It seems like the precious metals segment reacquired its haven status, even though Oil prices edged higher. The XAG/USD trades at $65.85, after reaching a low of the day (LOD) of $64.70.
XAG/USD Price Forecast: Technical OutlookSilver seems poised to consolidate around the $64.70–$66.70 area, though, per market structure, it remains neutral to downward-biased. In the short term, momentum favors bulls, as indicated by the Relative Strength Index (RSI), but they must clear key technical resistance levels before the white metal shifts bullish.
The first resistance is the 100-day Simple Moving Average (SMA) at $68.72. Once cleared, the next stop would be the $70.00 figure, followed by the 200-day SMA at $71.73.
On the flip side, XAG/USD’s first support is the August 14 daily low of $63.51. Below this floor level, the next support is the 50-day SMA at 61.31, ahead of the $60.00 threshold. A breach of the latter will expose an upslope support trendline at around the $58.40–$58.60 range.
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.
In this week’s Live from the Vault, Andrew Maguire is joined by silver analyst Peter Krauth to discuss January´s dramatic correction — and explain why silver holding firmly above $50 for nearly a year signals the real bull market move is still ahead.
As institutional money begins to enter the sector and silver miners generate cash flows that outperform every other S&P sector, Peter outlines why he sees current levels as a rare window - one that history suggests will not stay open for long.
Timestamps:00:00 Start01:27 Why Peter went long silver at $56 when everyone else was bearish05:15 Silver miners are lagging - but not for long09:07 Half a billion dollars is sitting on the sidelines waiting for silver14:12 Was January a bear trap? Peter makes the case20:01 Why silver mining is tiny - and why that makes it explosive25:18 Solar demand, copper substitution and why silver still wins30:33 How Asia´s gold market is quietly pulling silver higher34:01 Why technical analysts are getting silver completely wrong
The 200-day EMA is an indicator that a lot of people pay close attention to, and the fact that it has caused a little bit of resistance isn’t a huge surprise to me, just as the 50-day EMA sitting just below has offered a bit of support.
Ultimately, this is a market that tends to be very sensitive to the U.S. dollar, risk appetite, and interest rates. So, with all of those in play at the same time, it’s not a huge surprise to see that this recent bounce, although impressive, has failed to really follow through with a larger move.
Geopolitical Risks, Demand Outlook, and Support Floors I think there are a lot of questions out there right now as to where certain things go, the Middle East for example, and therefore the idea of trading silver in massive quantities probably scares a lot of traders.
Ultimately, this is a market that has a lot more demand than supply going forward, so longer term I like this market. But right now we have so many moving pieces that it’s difficult, I think psychologically for a lot of people, to get aggressive here.
The question I have at this point is: would the area between $55 and $60 end up being a floor? I think that’s what’s trying to be settled right now, and could take a while in this environment.
Silver (XAG/USD) extends its advance on Monday and trades around $66.30 at the time of writing, up 2.47% on the day. The white metal continues to rebound from the $63.50 area reached on Friday, mainly supported by the weakening US Dollar (USD) and fading expectations that the Federal Reserve (Fed) will raise interest rates again in September.
The shift in monetary policy expectations follows a series of disappointing US economic releases. US Retail Sales declined by 0.6% in July, while markets had expected a 0.1% increase, following a 0.2% rise in June.
These figures add to the annual slowdown in the Consumer Price Index (CPI) and Producer Price Index (PPI), as well as the weak July Nonfarm Payrolls (NFP) report. The accumulation of signs pointing to a slowdown in the US economy is reducing pressure on the Fed to raise interest rates further.
According to the CME FedWatch tool, markets now see around a 70% chance that the US central bank will leave interest rates unchanged at its September meeting, up from 48% a week earlier.
This repricing weighs on the US Dollar and provides support to Silver. The US Dollar Index (DXY), which measures the Greenback’s value against a basket of six major currencies, trades around 99.50 at the time of press after touching 99.30, its lowest level since June 5. A weaker US Dollar tends to make precious metals denominated in the US currency more attractive to investors using other currencies.
Investors remain attentive to geopolitical tensions in the Middle East, particularly around the Strait of Hormuz. Persistent risks to energy supplies are keeping Oil prices elevated and could fuel inflationary pressures, potentially limiting the Fed’s ability to adopt a more accommodative stance.
Market attention now turns to the Minutes of the July Federal Open Market Committee (FOMC) meeting, due on Wednesday. The document could provide further insight into the balance of risks within the Fed and determine whether the recent decline in rate hike expectations can persist, a factor likely to remain a key driver for Silver in the near term.
XAG/USD technical analysisIn the one-hour chart, XAG/USD trades at $66.36, retaining a bullish near-term bias as price holds well above the 100-period simple moving average (SMA) near $65.14 and the 200-period SMA around $64.04. The metal also respects an ascending trend-line support coming from $63.51 and now intersecting near $65.38, reinforcing the constructive structure, while the Relative Strength Index (RSI) around 65 suggests firm but not yet extreme upside momentum.
On the topside, the immediate hurdle is the horizontal resistance at $66.80, where buyers could face profit-taking. On the downside, initial protection is seen at the rising trend-line support near $65.38, followed by the 100-period SMA at $65.14; a deeper retreat would expose horizontal support at $64.25 ahead of the 200-period SMA at $64.04, where broader bulls would be expected to defend the uptrend.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver prices (XAG/USD) rose on Monday, according to FXStreet data. Silver trades at $65.46 per troy ounce, up 1.17% from the $64.70 it cost on Friday.
Silver prices have decreased by 7.91% 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 67.11 on Monday, down from 67.65 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 higher early Monday, reaffirming Friday’s minor swing bottom at $63.50 and putting the market in a position to challenge last week’s two-month high at $66.80. The new minor range is $66.80 to $63.50. Its pivot at $65.15 may be controlling the direction of spot silver into the close.
If the market continues to hold $65.15 then it could have a shot at $66.80, but buying volume will be the key. A failure at $65.15 and traders will be talking about a test of $63.50 again.
A breakout over $66.80 will have bullish traders talking about the 200-day moving average at $71.60 again. This is the indicator that some believe must be overcome in order to bring institutional money back into the market. On the downside, the major support remains the support zone formed by the 50-day moving average at $61.30 and 50% of the all-time high at $60.835.
With the 50-day MA at $61.30 and the 200-day MA at $71.60, some speculators are eyeing their midpoint at $66.45 as the key pivot. This pivot has been tested several times over the past week and it appears to be worth watching if it supports your trading style.
What to Watch The dollar decides this week. Hike odds are lower and the inflation data came in soft, but the currency has to confirm by staying weak or the same pattern from last week plays out again. Energy prices are the second force. Crude staying elevated keeps the safe-haven floor under precious metals but simultaneously rebuilds the inflation argument that can push rate expectations higher. Monday’s rally is a second attempt at $66.80 and the trade comes down to whether the dollar gives the market enough room to convert the attempt into a breakout.
Silver is range-bound between the major moving averages and the midpoint pivot near $66.45 has been the battleground. The entire conversation changes at $66.80, which is where the 200-day MA starts pulling institutional interest back toward the market. Below there, the 50-day has held the base through the entire summer move and that is where the structure of this rally gets tested.
Silver (XAG/USD) trades on a strong footing on Monday, reaching levels above $65.80 at the European session opening times, after bouncing from the $63.50 area on Friday. Precious metals are being boosted by US Dollar (USD) weakness, as recent US macroeconomic data has curbed hopes of Federal Reserve (Fed) interest rate hikes this year.
US data released on Friday endorsed this view, as July's Retail Sales dropped 0.6% against market expectations of a 0.1% gain, following a 0.2% increase in June. These figures follow relatively soft producer and consumer price figures released earlier in the week and another disappointment in Nonfarm Payrolls in the previous week. Against this background, investors have dialed back bets of a Fed hike in September to 30%, from above 50% one week ago, according to data by the CME Group's FedWatch Tool.
Technical Analysis: Key resistance is at the $67.00 area
XAG/USD reached the target of a bullish Head & Shoulders pattern at the $67.00 area last week, and has been consolidating ever since, with bearish attempts limited above previous highs, at $63.30. The pair, thus, holds a constructive near-term pattern and momentum indicators in the daily chart remain within bullish territory. The Relative Strength Index (14) is hovering above 60, and the Moving Average Convergence Divergence (MACD) line maintains a firm positive reading near 0.81, highlighting persistent upside pressure.
Bulls remain capped below the $66.00 area on Monday, which is closing the path towards the June 22 high, at $67.17. Further up, there is a heavier supply zone defined by the June 17 high, at $71.56, and the 200-day Simple Moving Average (SMA) around $71.70.
On the downside, the mentioned $63.30 area is expected to challenge bears, ahead of the August 6 and 7 lows, around $62.00 and the late July lows, in the mid-range of the $56.00s.
(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 (XAG/USD) is seen building on Friday's bounce from mid-$63.00s and gaining some follow-through positive traction at the start of a new week. The white metal, however, continues with its struggle to break above the 100-day Exponential Moving Average (EMA) and currently trades above mid-$65.00s, up around 1.50% for the day.
The US Dollar (USD) selling bias remains unabated as traders continue to scale back Federal Reserve (Fed) rate hike bets amid signs of cooling US inflation and weak consumer spending. This, in turn, is seen as a key factor underpinning demand for USD-denominated commodities, including the XAG/USD, and backs the case for further gains.
From a broader technical perspective, the XAG/USD has been oscillating in a familiar range over the past week or so. This could be categorized as a bullish consolidation phase against the backdrop of a goodish recovery from the year-to-date low, touched in July, and the recent breakout through the 23.6% Fibonacci retracement level of the May-July downfall.
Moreover, momentum indicators stay constructive as the Relative Strength Index (RSI) hovers near 61, and the Moving Average Convergence Divergence (MACD) histogram holds in positive territory. This suggests that upside attempts could persist even as the XAG/USD struggles to make it through the 100-day EMA pivotal resistance near the $66.33 area.
The said barrier is followed by the 38.2% Fibo. level at $67.93. A sustained move above the said levels would be needed to pave the way for further gains toward the mid-range Fibonacci hurdle at $72.02. On the downside, initial support is aligned with the 23.6% Fibo. near $62.87, where a break would expose the lower anchor of the current swing near $54.70.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
XAG/USD 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 (SILVERU2026): Arc cycle analysisOverview: Based on Arc Cycle Analysis applied to the 1h chart, Silver is interacting with the 0.5 Resistance Arc within the current Arc Cycle. Price is testing this Resistance Arc, suggesting the potential for a breakout toward the next Resistance Arc.
Metric
Reading
Market bias
Bullish Acceleration
Preferred scenario
Potential Breakout / Advance Toward the Next Resistance Arc
Primary target zone
66.30
Scenario invalidation
Sustained close below $64.70
Current arc level
Resistance Arc (0.5)
Cycle status
Testing Resistance Arc
Arc integrity
Weakening
Market outlookPrice is testing the 0.5 Resistance Arc, where continued buying pressure could result in a breakout toward the next Resistance Arc. A sustained breakout above the Resistance Arc would support continued movement toward the next Resistance Arc (0.618 Arc).
Conversely, failure to achieve a sustained 1h close above the Resistance Arc would invalidate the bullish scenario and could shift the outlook toward the next Support Arc.
Silver price advanced by some 0.39% on Friday, capped by rising US yields, even though US data was softer than expected. XAG/USD trades at $64.70, after bouncing off daily lows of $63.51.
XAG/USD Price Forecast: Technical OutlookThe white metal remains downward biased despite signs of bottoming around the $54.70 area, near the yearly low of $54.77. Momentum is bullish in the short term, as indicated by the Relative Strength Index (RSI), but from a market structure perspective, it remains bearish.
For a bullish continuation, the first resistance for XAG/USD would be the 100-day Simple Moving Average (SMA) at $68.76. Above, the first key resistance is the 200-day SMA at 71.64, ahead of the $72.00 mark
On the downside, if Silver drops the July 6 high of $63.28, the next support would be the 50-day SMA at $61.35. Below the next stop would be the August 3 low of $56.57, followed by the yearly low of $54.77.
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.
Macro Pressures and Support Levels There are also questions now about how the Federal Reserve will react to certain things, and whether or not interest rates are going to rise quickly anymore. At one point, there was the thought that they might get a little bit aggressive. It’s still, I think, a little early to tell, but the latest economic information out of the United States has been that the economy is slowing down a little bit. But really, this has only been in the last few weeks, so we’ll have to wait and see if that actually holds.
As things stand right now, a couple of green candles in a row is a good sign, but we’re a long way from forming another swing high. And one would think that the $70 level above probably has some psychology attached to it as well as market memory from both support and resistance on lower time frames. So we’ll see how that plays out.
Underneath, we have the 50-week EMA, which we are sitting on. We have the $60 level and the $55 level, all potentially offering support.
Silver (XAG/USD) trades on the front foot on Friday but lacks strong follow-through and remains within the narrow range seen this week. At the time of writing, XAG/USD trades around $65 after bouncing from an intraday low of $63.51.
The US Dollar (USD) weakens across the board as the latest batch of US economic data reduces expectations of a near-term Federal Reserve (Fed) interest-rate hike, creating a supportive backdrop for the non-yielding metal.
Meanwhile, Silver also maintains a positive technical bias following its recent recovery from near $55. However, weakening short-term momentum leaves the metal vulnerable to further consolidation.
Technical Analysis: 4-hour chart
XAG/USD maintains a bullish near-term bias as price holds above the 50-period Simple Moving Average (SMA) near $63.60 and the longer-term 100- and 200-period SMAs clustered between roughly $60.80 and $59.90. The pair is consolidating just under the recent cycle highs, with the Relative Strength Index (14) around 55 suggesting moderately positive but not overextended momentum, while the Moving Average Convergence Divergence (MACD) remains below zero with a negative line, hinting that upside pressure is firm but losing some steam after the latest rally.
On the downside, initial support is seen at the 23.6% Fibonacci retracement at $64.38, followed by the 50-period SMA at $63.60 and a dense structural zone formed by the 38.2% retracement at $62.89 and the 50.0% level at $61.68, which converge with the 61.8% retracement at $60.47 and the 100-period SMA at $60.84.
Deeper setbacks would expose the 78.6% retracement at $58.76 and the 200-period SMA near $59.92 as a broader bullish base, while on the topside, the recent anchor around $66.80 acts as the next significant resistance level that bulls would need to clear to extend the uptrend.
Technical Analysis: Daily chart
XAG/USD holds above the 50-day SMA at $61.36 and has also reclaimed the 23.6% Fibonacci retracement at $63.10 as support, which together suggests a constructive near-term bias despite the broader downtrend defined by the 100-day SMA at $68.77 and the 200-day SMA at $71.64 overhead.
A firm Relative Strength Index (RSI) near 59 and a positive Moving Average Convergence Divergence (MACD) line with a still-elevated histogram hint that bullish momentum is intact while price remains under these longer-term averages.
On the topside, initial resistance is located at the 38.2% Fibonacci retracement at $68.12, closely followed by the 100-day SMA at $68.77, while the 200-day SMA at $71.64 and the 50% retracement at $72.18 form a higher cap ahead of the 61.8% and 78.6% retracements at $76.24 and $82.02, respectively.
On the downside, immediate support appears at the 23.6% retracement at $63.10, with the 50-day SMA at $61.36 protecting the recent advance; a deeper pullback would expose the structural floor around the $54.99 cycle low.
(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.
200-Day EMA and Key Resistance Higher yields typically will work against silver, so I think that’s part of the hesitation here. Furthermore, when we look at the price action, the structure, yes, we did break out of consolidation, but we haven’t made a major swing high, at least not quite yet.
We are hanging around the 200-day EMA, and that 200-day EMA is a major indicator of the trend, be it bullish or bearish. If we could break above $70, that could really get the bulls going.
Right now, though, I think it’s somewhat of a wait-and-see mode. We have seen some weaker economic numbers coming out of the United States that might be part of what’s going on here. But at the end of the day, there is still major headline risk.
The Strait of Hormuz staying restricted is part of the reason the dollar held. Geopolitical uncertainty keeps a bid under the greenback even as rate expectations shift lower. Silver is trading the rate outlook. The dollar is trading the conflict. They are looking at different sides of the same story and this week the dollar won.
The Fed Is Not Done Debating and Oil Keeps the Door Open The inflation reports weakened the September hike case. They did not settle it. The Fed is still split. Some officials are focused on the risk that oil pushes inflation higher again. Others now have weaker payrolls, soft CPI and flat PPI to argue that another increase can wait.
Crude pulled back this week on OPEC and IEA demand downgrades, which takes some pressure off the headline inflation number the Fed watches. But oil is still well above pre-conflict levels and the strait is still restricted. A fresh move higher in crude rebuilds the inflation argument that two soft reports just weakened. Silver is not trading the war. It is trading what the war does to fuel costs and what fuel costs do to the Fed.
What to Watch Silver enters the weekend with a better rate backdrop than it had a week ago. The payrolls miss started it. CPI did not reverse it. PPI reinforced it. September hold odds at 65% are a real shift from where they were seven days ago. The metal still could not hold above $66.00 after reaching $66.80, and the dollar staying firm through every soft print is the reason the rate-relief trade did not translate into a sustained rally.
The main trend is up and Friday’s bounce off last week’s close at $63.51 shows defensive buying near support. A push through $66.80 resumes the uptrend with the 200-day moving average at $71.51 as the next target. A failure to hold and a break toward the 50-day at $61.35 tells you the rate trade was not strong enough to overcome the dollar headwind.
Silver (XAG/USD) gains 0.37% on Friday and trades around $64.70 at the time of writing, erasing part of its recent correction. The precious metal benefits from easing expectations of monetary tightening in the United States (US), although persistent tensions in the Middle East continue to fuel concerns about energy prices and limit investor optimism.
The latest US inflation data reinforce the view that price pressures are beginning to ease. The Producer Price Index (PPI) slowed to 4.7% YoY, while the Core PPI came in at 4.2%. These figures, combined with the Consumer Price Index (CPI) data released on Wednesday, are helping reduce expectations of further monetary tightening by the Federal Reserve (Fed).
According to the CME FedWatch tool, markets now see around a 35% chance of an interest rate hike at the September meeting, down from 40% immediately after the PPI release and from a significantly higher level at the end of July. This shift supports Silver, as lower interest rates reduce the opportunity cost of holding non-yielding assets.
Fed officials nevertheless remain divided. Chicago Fed President Austan Goolsbee believes that some of the recent price pressures stem from temporary factors, particularly tariffs and energy, arguing in favor of a patient approach. In contrast, Cleveland Fed President Beth Hammack considers that progress on inflation remains insufficient and that further rate hikes may be necessary to ensure price stability.
The geopolitical backdrop also remains a key driver for XAG/USD. Negotiations aimed at restoring traffic through the Strait of Hormuz remain stalled, while traffic continues to be very limited through this key waterway and the Bab el-Mandeb Strait. Disruptions to energy supplies are keeping Oil prices elevated and could reignite inflationary pressures, complicating the Fed's task.
Attention now turns to US July Retail Sales, due later on Friday. Following recent signs of slowing inflation and weakness in the labor market, a weaker-than-expected reading could reinforce expectations of a more cautious Fed and provide further support to Silver. Conversely, resilient US consumer spending could revive speculation that interest rates will remain elevated for longer.
XAG/USD technical analysisIn the one-hour chart, XAG/USD trades at $64.67, maintaining a capped tone as it holds beneath the 100-hour simple moving average (SMA) at $65.00 and the downward resistance trend line coming in near $65.15. The pair remains above the 200-hour SMA at $63.09, which hints at an underlying broader uptrend, but the current location between these moving averages favors near-term consolidation under resistance. The Relative Strength Index (RSI) at 52 suggests mildly positive momentum, yet this does little more than temper selling pressure while overhead levels continue to restrain the upside.
On the topside, immediate resistance is clustered around the 100-hour SMA at $65.00 and the trend-line barrier near $65.15, with a more distant horizontal cap at $66.80 likely to attract sellers on any stronger rebound. On the downside, initial demand is expected near the 200-hour SMA at $63.09, closely followed by the horizontal support at $63.00, where a break would open the door to a deeper correction and weaken the broader constructive backdrop for silver prices.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver prices (XAG/USD) rose on Friday, according to FXStreet data. Silver trades at $64.76 per troy ounce, up 0.48% from the $64.45 it cost on Thursday.
Silver prices have decreased by 8.90% 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 67.22 on Friday, down from 67.50 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.
Silver price (XAG/USD) extends its losses for the second consecutive day, trading around $63.50 per troy ounce during the Asian hours on Friday. Silver price falls as investors opted to take profits while weighing the Federal Reserve’s (Fed) monetary policy trajectory alongside ongoing geopolitical tensions in the Middle East.
Cooling inflation data further shaped market sentiment, as the Bureau of Labor Statistics reported that US wholesale prices for goods and services remained flat in July. This came in softer than the expected 0.2% growth and followed a revised 0.1% decline in June. Excluding the volatile food and energy sectors, core Producer Price Index (PPI) figures nudged up 0.2%, slightly below the consensus estimate of 0.3%. On a year-over-year basis, headline PPI rose 4.7% while core PPI increased 4.2%.
These softer inflation numbers have prompted market participants to recalibrate their expectations for Federal Reserve interest rate policy. According to the CME FedWatch Tool, the implied probability of a rate hike at the Fed’s September meeting dropped to 34.8%, down from 40% immediately following the PPI release. At the same time, diplomatic negotiations to reopen the Strait of Hormuz have stalled, leaving investors wary of a potential escalation that could spark higher energy costs and rekindle inflationary forces.
Silver draws strong CTA interest as prices test key triggerAccording to TD Securities, "Silver stands out for near-term CTA flows," with the bank highlighting that "prices above $66.80/oz" are "likely to see further buying." Their models suggest that commodity trading advisers are "likely to add 3-4% of historic max length under all pricing scenarios into next week," underscoring robust systematic demand for the metal on sustained price strength.
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% to near $63.80 during the Asian trading session on Friday. The white metal faces selling pressure as financial markets remain worried about the global energy supply disruption due to the blockade on the Strait of Hormuz and Bab al-Mandab Strait, which together account for almost 27% of global energy supply.
Minimal traffic through these straits is keeping oil prices higher, a scenario that boosts inflation expectations and prompts fears of interest rate hikes by central banks. Such a case bodes poorly for non-yielding assets, like Silver.
As of writing, the WTI Oil price trades flat at around $80.45. The oil price has faced slight selling pressure in the past few days; however, supply concerns are expected to keep the downside limited.
Oil momentum cools, but TD Securities still sees upside ahead
According to TD Securities, the recent loss of steam in the rally has seen “easing near-term momentum” and has “also catalysed modest selling in WTI crude on the day.” However, the bank’s commodity strategists “continue to highlight that fundamental tightness across crude and product markets should ultimately support further upside,” suggesting that the latest bout of selling is viewed as a temporary setback within an otherwise constructive medium-term outlook for Oil prices.
Meanwhile, traders pricing out the possibility of a Federal Reserve (Fed) interest rate hike in the September meeting due to a slight slowdown in United States (US) inflation growth and rising labor market concerns are expected to limit the downside in the Silver price.
According to the CME FedWatch tool, the odds of the Fed holding policy rates steady in the September meeting have increased to almost 65%. This is a sharp turnaround from a 75% chance that the Fed would deliver two interest rate hikes by the end of the September policy meeting, recorded a month ago.
Silver Technical Analysis
XAG/USD trades at around $63.78, extending its advance above the 20-day Exponential Moving Average (EMA) at $61.78 and hinting at a bullish near-term bias.
The metal is holding comfortably over its short-term trend indicator, while the Relative Strength Index (RSI) at 56 stays in positive territory without reaching overbought conditions, suggesting that buyers retain control but still have room to push prices higher.
On the downside, initial support is seen at the 20-day EMA near $61.78, which underpins the current bullish structure and would be the first level to watch on any pullback. A deeper slide would expose the broader momentum floor implied by the RSI zone around 56, where dip-buying interest could re-emerge as long as price holds above the $61 handle. On the upside, the June 16 high near $71.20 would be the key hurdle.
(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.
