Daily US Dollar Index (DXY) The dollar rallied. The 2-year yield pushed higher. The 10-year moved back toward 5%. XAGUSD dropped from $64.94 to $62.31 in the hours after the announcement. That is a $2.63 range in one session and most of it came on the downside after the statement.
Silver settled at $62.99. Well off the low. The sellers who had the hawkish Fed, the stronger dollar and higher yields behind them could not hold the metal below $63. That failure matters more than the $0.70 lower close.
Silver Price Forecast
Every new Silver analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Silver forecastsThe 5% Yield Was Not New Information Silver had already been trading under the threat of a 5% 10-year yield before the Fed ever spoke Wednesday. The metal spent Monday and Tuesday absorbing rising rate expectations, a dollar at two-week highs and yields at 2007 levels. Buyers showed up on every test of the support zone near $63 and defended it.
Daily Spot Silver (XAG/USD) Spot Silver is edging higher early Thursday after posting its fourth straight successful test of the 50-day moving average at $62.81. The main trend is down according to the daily swing chart. For the second time this week, sellers reaffirmed the downtrend with a lower low at $62.31, however, the lack of follow-through pressure may have triggered today’s early short-covering rally.
A trade through $62.31 will once again reaffirm the downtrend. A trade through $68.33 will change the main trend to up.
The minor trend is also down. A trade through the minor top at $64.94 will change the minor trend to up and shift momentum to the upside.
The intermediate range is $54.78 to $71.18. Its retracement zone is $62.98 to $61.04. This week’s lows have all tested this zone successfully. The 50% level at $62.98 forms a support cluster with the 50-day moving average at $62.81. Thursday’s early low is $62.85.
Additional levels to watch include long-term 50% support at $60.835. On the upside, 50% levels at $65.32 and $66.75 are potential resistance.
What to Watch Warsh answered his question Wednesday. The Fed is still raising rates and still worried about inflation. Now silver has to answer the other one. Can sellers actually break this market with that information? Four tests of the 50-day moving average this week and four failures. A hawkish Fed, a stronger dollar and yields near 5% and the low at $62.31 still held. If buyers keep defending the downside after absorbing all of that, the question stops being whether silver breaks lower and starts being what it would take to knock out the bid entirely.
The bias leans bearish with the main trend down on the daily swing chart and this week’s lower lows reaffirming the direction. The bearish case has a credibility problem though. The 50-day moving average at $62.81 and the retracement zone at $62.98 to $61.04 have stopped every selloff this week including the post-Fed flush to $62.31.
A push through the minor top at $64.94 flips the minor trend to up and puts resistance at $65.32 to $66.75 in play. Overcoming $66.75 gives buyers a clean path toward $68.33 and a trend change. On the downside, a break through $62.31 would finally produce the follow-through sellers have been unable to generate and opens the door to $61.04 and long-term support at $60.835.
We are hanging around the 50-day EMA, as well as the 200-day EMA, and have been consolidating for weeks now. Despite all of the noise out there, silver has been somewhat sideways. It’s been kind of interesting to watch, actually.
With the $60 level underneath being support and the $70 level above being resistance, we’re basically just hanging out in the middle right now. Longer term, I do like silver. There’s a major deficit in production, and demand is only going to increase over time. With that being said, I favor longer-term bullish positions.
But in the short term, I recognize we’re sitting right in the middle of a $10 range, which silver likes to trade in $10 ranges. Now we’re just going to have to wait to see what the reaction to the FOMC is.
Silver Price Forecast
Every new Silver analysis as it publishes, today's technical signal and key levels, live price — on one page.
Silver recently reversed down from the support area between the support level 62.60 (which has been reversing the price from March), lower daily Bollinger Band and the 50% Fibonacci correction of wave A from July.
The upward reversal from this support zone stopped the previous minor correction B from the end of August.
Given the strength of the support level 62.60, Silver can be expected to rise to the next resistance level 68.45.
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For now, the bond market is the more important concern for precious metals. The U.S. Benchmark 10-year yield crossed the 5% mark for the first time since October 2023, making the opportunity cost of holding Gold higher. With markets less concerned about the Fed hiking and more concerned about what Chair Kevin Warsh indicated, a more forward guidance indication that Wednesday starts a broader rate hike cycle will be a greater fundamental headwind.
Counter to the above, geopolitical fluctuations continue to be more supportive. A repeat of weekend attacks by Iran-aligned Houthis on Saudi Arabia has continued to create disruptions to Middle East energy supplies, making the defensive assets needed more supportive. While the resulting inflation has increased the case for tighter Fed policies, the need for Middle East defensive assets remains.
Silver shares the rate-and-yield stress that plagues gold. The combined impact of industry and worrying longer-term manufacturing and investment demand erosion from elevated borrowing costs may intensify the impact of industrial demand. Fortunately, the physically tight market serves as a supportive anchor.
Fundamental bias: Gold neutral-to-bearish, Silver neutral-to-bearish, with Wednesday’s Fed guidance being more significant than the expected rate hike.
Gold Technical Analysis: XAU/USD Holds $4,283 Support as $4,316 Resistance Caps the Recovery
Silver is currently correcting the bullish cycle that began at the July 2026 low, potentially resulting in a significant pullback. This raises critical questions for traders: what happens once the correction concludes? Will the metal rally toward the January 2026 high, or is it poised for extended sideways movement or further downside?
Following the record highs in late January 2026, Silver experienced a sharp decline, signaling the onset of a significant bearish cycle. Despite this sell-off, many market participants maintain a bullish outlook, anticipating that the metal will eventually break to new highs in the coming weeks, months, or years. Meanwhile, after completing a 7-swing structure in July 2026, Silver received a major boost as dollar weakness encouraged investors to move into riskier assets.
Following the July 2026 lows, Silver rallied, recovering exactly 23.6% of the decline from the January peak while hitting a three-month high in late August. Furthermore, the commodity completed a clear 5-wave structure. Given the shallow depth of this bounce, market participants are anticipating at least another 5-wave move to the upside from the late August pullback extreme. Our global team of Elliotticians at Elliottwave-Forecast suggests that the bearish cycle initiated by the January high is now complete as a supercycle degree wave (II), signaling the start of a broader recovery. This outlook is further supported by a bearish dollar forecast and anticipated acceleration in both equities and high-beta assets.
Silver Elliott Wave Forecast – 5th September 2026 Since the July 2026 low, Silver has completed a 5-wave impulse structure, which we identified as wave ((1)). According to standard Elliott Wave theory, a 5-wave advance is typically followed by a 3-wave pullback before the bullish cycle resumes. We shared the corresponding H4 chart with our members on September 5, 2026, to illustrate this expected development.
Wave ((2)) began developing from the peak of wave ((1)). Following the completion of a 5-wave structure for wave (A), we anticipated a 3-wave bounce for wave (B), followed by a 5-wave decline in wave (C) to finalize wave ((2)) before the broader bullish cycle from late July could resume. As the chart illustrates wave C of (B) in progress, we projected one final leg higher followed by a swift sell-off.
Silver Elliott Wave Forecast – 10th September 2026 The price has completed wave (B) exactly as anticipated, followed by the expected sell-off for wave (C) of ((2)). Silver is now positioned to extend its decline toward the 60.4–56.4 support zone, where we expect wave ((2)) to conclude before the resumption of the broader bullish trend.
The H4 chart shared on September 6th successfully guided members through the price action seen on September 9th and 10th. This helped them avoid being trapped in premature long positions. With the structure confirming that a significant move was not yet imminent, the question remains: what comes next? We have been tracking these developments closely through our hourly charts, which are updated four times per day for our members. Below is the latest update.
Silver Elliott Wave Forecast – 14th September 2026 The latest H1 chart below highlights the sub-waves of wave (C). The price is currently developing within wave 3 of (C), specifically tracking wave ((ii)) of 3 of (C). We will provide a further update early in the Asian session once new market data becomes available.
The upcoming Asia H1 update will determine if Silver moves higher to extend wave 2 or breaks below the wave ((i)) low, which would confirm our current count. Additionally, members can access our daily technical video, which outlines the expected price path heading into the London session. This is part of our 24-hour market analysis service. We provide up-to-date technical insights for Silver and over 77 other instruments, including Forex, Cryptocurrencies, ETFs, Stock Indices, and Commodities.
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Spot silver daily chart shows larger trend structure. Source: TradingView Hammer Formation Adds Confirmation Potential Given the current price action, silver may end the day with a hammer candlestick pattern, establishing a potential one-day bullish pattern at a key support zone. In addition to support indications noted above, Monday’s low also completed a 61.8% Fibonacci retracement of the prior upswing. The recovery of key support levels following the day’s low also included the July lower swing high of $63.28. A bullish trend reversal signal occurred during the August advance that reclaimed that level.
Bullish Evidence Builds Taken together, the bullish technical evidence suggests that a low for the pullback may have been reached with Monday’s low. An upside breakout above $64.48 would trigger the hammer pattern and generate a new higher swing low at $62.33. Notably, establishing a sustained higher swing low would suggest that the first pullback after a significant upside breakout may be close to completing. Both the July swing high and the 50-day moving average previously represented resistance and are now potentially acting as support.
That shift from resistance to support is bullish behavior and reinforces the developing setup. However, additional signs of strength are needed to confirm the thesis and validate Monday’s apparent shakeout, which began with silver briefly falling below key support before buyers regained control.
Long-Term Demand Still Remains Longer term, silver still has a good story to tell when it comes to the electrification of the economy and the fact that there isn’t enough silver coming out of the ground to overwhelm demand. With that being said, longer term, I still like the silver market, but in the short term, it is going to continue to react to these crazy interest-rate movements as traders try to price in the idea of energy inflation really taking hold.
With this, I am more bearish than bullish, but I recognize that we are at the bottom of a range that we have been in for a couple of weeks, so a bounce would not surprise me either. The market has been bouncing around between $63 and $68, with an eye on $70 above as a potential ceiling and $60 below as a potential floor in the market at the moment.
Daily Spot Silver (XAG/USD) Spot Silver (XAGUSD) is edging lower early Monday, while sitting inside Friday’s range. The price action suggests investor indecision and impending volatility. On Friday, the market’s main trend turned down when sellers took out the September 2 bottom at $63.31. A trade through $62.85 will signal a resumption of the downtrend. Taking out $68.33 will change the main trend to up.
The market is also near the 50-day moving average at $62.58, making it potential support. The 200-day moving average is a distant $73.00.
The July 17 to August 28 range is $54.78 to $71.18. Its retracement zone at $62.98 to $61.04 may have stopped the selling on Friday at $62.85. Inside this zone is the 50-day moving average at $62.58. This makes $62.98 to $62.85 an important area to watch for a technical bounce or a technical breakdown.
Additional support is 50% of the all-time high at $60.835. Near-term resistance is a pair of 50% levels at $65.59 and $67.01.
What to Watch Oil is the outside market calling the shots on silver this week. A shipping agreement on the Strait or a Saudi pipeline repair update takes pressure off crude and gives the metal room. Without either, the inflation argument stays alive straight into Wednesday’s decision. The market is telling traders that higher energy prices are a rate problem before they become an inflation-hedge reason to own silver. That is why crude is pushing higher and XAGUSD is trading lower. Warsh’s tone on energy prices after the announcement determines whether the rate pressure gets worse or starts to lift.
The bias leans bearish with the main trend down on the daily swing chart after Friday’s break of $63.31. The retracement zone at $62.98 to $61.04 held Friday’s selling at $62.85 with the 50-day moving average at $62.58 sitting inside the zone. A break through the 50-day with conviction opens the downside toward $60.835. Resistance sits at $65.59 and $67.01 with the swing top at $68.33 needed to change the trend back up.
The short‑term Elliott Wave outlook in Silver (XAGUSD)f rom the July 17, 2026 low indicates that the cycle is unfolding as a five‑wave impulse. Within this sequence, wave ((1)) concluded at $71.23. The subsequent pullback in wave ((2)) is now in progress, serving to correct the earlier advance. Its internal subdivision takes the form of a zigzag structure, which is typical in corrective phases. From the termination of wave ((1)), wave (A) ended at $63.28. Thereafter, wave (B) developed as a zigzag of its own. In this subdivision, wave A finished at $67.47, wave B retraced to $64.71, and wave C advanced to $68.32, completing wave (B) at a higher degree.
Following this, the metal resumed its decline in wave (C). The ideal target for this leg is measured by the 100% to 161.8% Fibonacci extension of wave (A). This projection yields a zone between $55.5 and $60.3. Buyers are expected to emerge in this area, setting the stage for the next upward cycle. In the near term, as long as the pivot at $71.23 remains intact, rallies should fail in either three or seven swings, leading to further downside pressure.
Silver 45 Minute Elliott Wave Chart XAGUSD Elliott Wave Video You are currently viewing a placeholder content from Default. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
ElliottWave-Forecast has built its reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, Cycles, Proprietary Pivot System, we provide precise forecasts with up-to-date analysis for 52 instruments including Forex majors & crosses, Commodities and a number of Equity Indices from around the World. Our clients also have immediate access to our proprietary Actionable Trade Setups, Market Overview, 1 Hour, 4 Hour, Daily & Weekly Wave Counts. Weekend Webinar, Live Screen Sharing Sessions, Daily Technical Videos, Elliott Wave Setup videos, Educational Resources, and 24 Hour chat room where they are provided live updates and given answers to their questions.
The Silver Market Does Have an Underlying Bid The silver market does have an underlying bid, though, because there is the electrification and clean-energy aspect of silver that still keeps it lively. With that being the case, the silver market looks as if it is trying to find its way one direction or the other.
With the ECB interest rate decision followed by PPI and then CPI on Friday, we may get a little bit of a move based on that. The Federal Reserve is announcing its latest interest rate decision on Wednesday of next week. That will be big on the calendar as well, as it could determine the next trend.
With everything that is going on, it is not a huge surprise that silver has been somewhat sideways in this area, as we are trying to fight headlines, interest rates, and central-bank hiking expectations all simultaneously. Therefore, I think it makes quite a bit of sense that traders might either be on the sidelines or simply not overly convinced as to what to do.
Silver prices (XAG/USD) fell on Thursday, according to FXStreet data. Silver trades at $66.68 per troy ounce, down 0.93% from the $67.31 it cost on Wednesday.
Silver prices have decreased by 6.19% 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 65.92 on Thursday, up from 65.39 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.
On the upside, a trade through the August 28 main top at $71.18 will reaffirm the uptrend. Taking out the June 17 main top at $71.56 will be a sign that the uptrend is strengthening. Furthermore, swing chart analysis indicates the next area to watch will be $77.01 and $78.83 from June 2 and May 25, respectively.
The short-term range is $71.18 to $63.31. Spot silver is currently trading inside its retracement zone at $67.25 to $68.17. Trader reaction to this zone is likely to determine the direction of the market today.
A sustained move over the 61.8% level at $68.17 could indicate the presence of buyers. If this move creates enough near-term momentum, the market could test $71.18 to $72.97, which is the main top and the 200-day MA, respectively.
On the downside, a sustained move under the 50% price could be a sign of near-term weakness. This could lead to a test of a minor 50% level at $65.60, followed by the two main bottoms at $63.31 and $62.56. The 50-day MA at $62.57 could also be put in play.
What to Watch The Producer Price Index at 12:30 GMT gets the first shot at the Fed trade. Treasury yields and the dollar are the two markets to watch after the number prints. The 10-year has been running at its highest since October 2023. The dollar has not followed it higher. The PPI decides whether that gap closes or stays open heading into Friday’s Consumer Price Index.
The bias ahead of the number is bullish and gets stronger if $68.17 is taken out with conviction. The retracement zone at $67.25 to $68.17 is the near-term battleground. A sustained move through $68.17 builds the momentum for a run at $71.18 and the 200-day moving average at $72.97. The trend weakens if buyers cannot hold $67.25. A failure of $63.31 changes the main trend to down and takes the bullish call off the table.
August 19 produced one of the year's stranger cross-asset rallies. Ether jumped 17.5% to $2,253, according to the ETHUSD price history. Silver futures finished 2.79% higher at $65.83 after opening near $63.43, historical market data show. Both moves came as the US Treasury stepped into a stressed corner of the bond market.
The Treasury said it would at least double the maximum size of its liquidity-support buybacks for 10-to-30-year securities, from $2 billion to $4 billion per operation. The change runs from September 9 through November 4, according to the official Treasury announcement. Markets turned against the dollar after the decision, and Ether erased its decline from April's monthly high, Reuters reported.
That made Ethereum vs. silver more than the usual digital versus industrial comparison. Both assets drew support from doubts about the dollar, but each translated those doubts through a different form of scarcity.
One macro signal, two scarcity stories behind ETH vs. XAG
The Treasury described the purchases as liquidity support, not monetary financing. The distinction matters. Buybacks improve trading in older securities but do not reduce the deficit or the amount Washington must finance. The announcement followed a rise in the 30-year Treasury yield to 5.34%, its highest level since 2007. Even after the expansion, the additional purchases remained small beside the $32.2 trillion Treasury market, according to Reuters' analysis of the programme.
Ether responded as the higher-beta scarcity asset. Ethereum's official staking dashboard reported 42.6 million ETH, or 34% of the supply, deposited in staking, while the protocol burns the base transaction fee. The rally also coincided with institutional demand. Farside Investors' fund data show US spot Ether ETFs attracting about $1.41 billion over nine consecutive positive sessions through August 27 and another $102.1 million on August 28.
Silver carries a physical constraint. The World Silver Survey 2026 projects a sixth consecutive market deficit, estimated at 46.3 million ounces. That is the updated annual survey figure. An earlier February forecast cited by Reuters placed the shortfall at 67 million ounces, so the two estimates should not be combined.
Silver remained expensive by long-term standards but far below its January record. A silver price chart shows the fall from the $121.60 high documented by Reuters to the mid-$60s. That decline changed the silver price investment case. Any silver price prediction based only on scarcity misses the repricing. A credible silver price forecast must also reflect industrial demand and real yields.
The ETH/XAG comparison survived, but the correlation did notThe first policy test came quickly. The July PCE price index rose 3.7% year on year, slightly above the 3.6% consensus, and the dollar index advanced to 99.145 on August 26, Reuters reported after the release. Two days later at Jackson Hole, Fed Chair Kevin Warsh called the 2% inflation target "firm" and said inflation remained too high in his official keynote remarks.
Ether nevertheless traded near $2,483 on September 8, while the spot silver price stood at $65.92. The ether price graph showed the clearer continuation of the original move.
That divergence weakens the case for a stable Ethereum vs. silver correlation. The Ethereum vs. Silver Safe Haven case is also uneven. Ether remains tied to crypto liquidity and risk appetite, while silver prices are influenced by industrial demand, substitution, and mine supply. Those competing forces help explain persistent silver price volatility.
What Versus Trade ETH XAG now measuresThe debasement story has not disappeared, but inflation has restored a cost to betting against the dollar. On September 8, markets assigned roughly a 60% probability to a September Fed rate increase, while silver traded at $65.92, according to Reuters' current metals report.
The search query "Should I invest in Ethereum or Silver?" treats the choice as static. For those who trade Ethereum vs. silver, the pair instead measures the strength of the debasement trade. A rising ETH vs. XAG ratio points to crypto liquidity and programmable scarcity. A falling ratio favors physical tightness, defensive demand, or a weaker appetite for digital assets. August opened a shared trade but did not turn Ether and silver into the same asset.
Silver (XAG/USD) struggles to capitalize on a modest intraday uptick to the $68.00 neighborhood and trades near the lower end of its daily range during the early European session on Thursday. The white metal, however, remains within striking distance of a nearly two-week high, touched on Wednesday, as traders keenly await the release of US inflation figures.
The US Producer Price Index (PPI) report will be released later today, while the US Consumer Price Index (CPI) is due on Friday. The crucial US data will be looked at for more cues about the Federal Reserve's (Fed) policy path, which, in turn, will influence the US Dollar (USD) price dynamics and drive the USD-denominated commodities, including the XAG/USD.
From a technical perspective, the white metal remains confined in a familiar range held over the past two weeks or so and, so far, has been struggling to build on its momentum above the 100-period Simple Moving Average (SMA) on the 4-hour chart. That said, supportive momentum indicators suggest that buyers retain control as long as pullbacks stay limited.
In fact, the Relative Strength Index (RSI) is hovering in the high-50s, and the Moving Average Convergence Divergence (MACD) is maintaining positive territory. However, a sustained strength beyond $68.00 is needed to back the case for a further near-term appreciating move toward the $70.00 psychological mark en route to the August swing high, above $71.00
On the downside, immediate support is seen near x$65.40-$65.30 or the lower boundary of the trading range. A convincing break below would shift the near-term bias in favor of bearish traders and expose the monthly swing low, around the $63.35-$63.30 region. The downward trajectory could drag XAG/USD further below $63.00, to the 62.20 support zone.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
XAG/USD 4-hour chart
Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver price (XAG/USD) trades higher at around $67.60 during the Asian trading session on Thursday. The white metal reflects strength as the US Dollar is under pressure ahead of the United States (US) Producer Price Index (PPI) data for August, which will be published at 12:30 GMT.
As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades marginally lower to near 98.75. The USD Index is close to its two-week low of 98.60 posted on Wednesday.
A lower US Dollar makes the Silver price a favorable risk-reward bet for investors.
Investors will closely track the US producer inflation data to get fresh cues regarding the Federal Reserve’s (Fed) monetary policy outlook.
The US PPI report is expected to show that headline inflation at the factory level accelerated to 5.3% Year-on-Year (YoY) from 4.7% in July. The core PPI – which excludes volatile food and energy items – is also expected to arrive higher at 4.6% YoY against the previous reading of 4.2%.
Signs of price pressures accelerating at the producer level would prompt expectations of Federal Reserve (Fed) interest rate hikes in the near term, a scenario that diminishes the appeal of non-yielding assets, such as Silver.
This week, the major trigger for the Silver price and the US Dollar will be the US Consumer Price Index (CPI) data for August, which will be released on Friday.
Silver Technical Analysis
In the daily chart, XAG/USD trades at $67.60. The near-term bias appears bullish as price holds above the 20-day Exponential Moving Average (EMA) at roughly $66.02, suggesting the recent advance remains supported by the short-term trend.
The Relative Strength Index (RSI) around 56 keeps a positive yet not overbought tone, hinting that upside momentum is intact but not stretched.
On the downside, immediate support is seen at the 20-day EMA at $66.02, reinforcing a deeper demand zone if a pullback develops. Looking up, the August high at $71.12 is the critical hurdle for the Silver price.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver price makes a U-turn on Wednesday and rises over 3.40%, as the Greenback weakens, putting the confirmation of a ‘head-and-shoulders’ chart pattern on hold, which has formed since mid-August. The XAG/USD trades at $68.00 after rebounding off $65.31.
XAG/USD Price Forecast: Technical OutlookPrice action shows the white metal is trading at an eight-day high of $68.30, rallying sharply and threatening to fail to confirm a bearish chart pattern. On its way north, the 100-day Simple Moving Average (SMA) was cleared at $67.17, exposing key technical resistance levels.
The Relative Strength Index (RSI) is bullish and has cleared the previous peak, indicating that buyers are gaining steam and putting upward pressure on Silver.
With that said, XAG/USD's first key resistance is the $70.00 figure. A decisive push can drive spot prices to the 200-day SMA at $73.00 before buyers launch an assault towards $ 75.00.
On the flip side, for a bearish continuation, XAG/USD must drop below the 100-day SMA at $67.18 and clear the September 8 low (LOD) of $65.54. Below is the $65.00 mark, followed by the September 2 swing low of $63.32.
XAG/USD Price Forecast: Technical Outlook
Silver daily chart Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver (XAG/USD) rebounds on Wednesday and trades around $67.50 at the time of writing, up 2.64% on the day. The white metal benefits from broad weakness in the US Dollar (USD), but its recovery faces a challenging environment for precious metals as surging energy prices revive inflation concerns and strengthen expectations of higher US interest rates.
The US Dollar remains under pressure, notably due to a sharp appreciation of the Japanese Yen (JPY). The US Dollar Index (DXY), which tracks the Greenback's value against a basket of six major currencies, falls around 0.25% on Wednesday and trades near 98.61, close to its lowest level since August 21. A weaker US Dollar tends to support Silver by making the precious metal cheaper for investors using other currencies.
This support is nevertheless offset by the sharp rise in Oil prices amid escalating tensions between the United States (US) and Iran. The US military says it destroyed five Iranian Oil tankers after the Islamic Revolutionary Guard Corps (IRGC) attempted to attack a US Navy warship. Tehran responded by targeting several American vessels and Oil tankers, while concerns over the security of the Strait of Hormuz remain elevated. Persistently elevated energy prices could sustain inflationary pressures and force major central banks to maintain tighter monetary policies.
In the United States, these developments are also fueling expectations of further tightening by the Federal Reserve (Fed). According to the CME FedWatch Tool, markets currently price in around a 62% chance of a 25-basis-point rate hike at the September 15-16 meeting. This prospect represents a headwind for Silver, a non-yielding asset that tends to become relatively less attractive when interest rates rise.
US Treasury yields also reflect these expectations. The benchmark 10-year US Treasury yield trades around 4.80%, near its highest level since November 2023. The combination of elevated yields and expectations of tighter monetary policy therefore limits the metal's ability to fully benefit from the weaker US Dollar.
On the economic front, Automatic Data Processing (ADP) data shows that US private employers added an average of 12K jobs per week during the period ending August 22, compared with a downwardly revised 10K previously. Investors now turn their attention to the Producer Price Index (PPI), due on Thursday, and the Consumer Price Index (CPI), scheduled for Friday. Hotter-than-expected inflation figures could reinforce expectations of a Fed rate hike and put renewed pressure on Silver.
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.
Pretty Good Longer-term Outlook for Silver Overall, though, when I look at this, I cannot help but think the market is just on pins and needles, waiting to see what the next shot across the bow is, which might be literal if we are talking about tankers in the Strait of Hormuz, as energy prices are driving up inflation expectations.
The longer-term outlook for silver is actually pretty good. It is part of the electrification and AI trade as far as the build-out is concerned, and there is obvious demand from there. But at the same time, it is sensitive to interest rates, and that is part of what the drag has been.
For myself, I am looking at this as a short-term, choppy, range-bound market, with a bit of the occasional volatility out there.
Silver prices (XAG/USD) rose on Wednesday, according to FXStreet data. Silver trades at $66.58 per troy ounce, up 1.23% from the $65.76 it cost on Tuesday.
Silver prices have decreased by 6.34% since the beginning of the year.
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 66.08 on Wednesday, down from 66.23 on Tuesday.
Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver (XAG/USD) builds on its intraday ascent and climbs back closer to the weekly high, around the $67.00 neighborhood during the early European session on Wednesday. The white metal, however, remains confined within a familiar range held over the past week or so, warranting some caution for bulls ahead of the crucial US inflation figures.
From a technical perspective, the XAG/USD bulls need to wait for acceptance above the 100-period Simple Moving Average (SMA) on the 4-hour chart, currently pegged just ahead of the $67.00 mark, before placing fresh bets. This will also mark a fresh breakout through the trading range and pave the way for additional near-term gains.
Meanwhile, the Relative Strength Index (RSI) has recovered toward the mid-50s, hinting at stabilizing momentum. Moreover, the Moving Average Convergence Divergence (MACD) shows a modest positive reading after a shallow dip, suggesting that the downside pressure is fading but not yet reversed, while the XAG/USD remains below the 100-SMA.
On the topside, momentum beyond the $67.00 mark could extend further towards retesting the monthly swing high, around the $68.00 round figure. Some follow-through buying would ease any near-term bearish tone and reaffirm a constructive outlook. On the downside, immediate support is seen near x$65.40-$65.30 or the lower boundary of the trading range.
A convincing break below would shift the near-term bias in favor of bearish traders and expose the monthly swing low, around the $63.35-$63.30 region, and drag the XAG/USD further below the $63.00 mark, towards the 62.20 support zone.
(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.
It Has Held Up Fairly Well Ultimately, this is a market that is dealing with the 10-year at points in time going to 4.8%. But we also have heavy inflation coming out of the crude oil market, and that could be a bit of an issue as well.
As long as the oil situation remains so messy with the headlines coming out of the Persian Gulf, it’s difficult to imagine that the bond markets will be calm. This is a scenario that has been the norm for some time now, and there are no signs of it changing in the short-term.
Furthermore, we get the ECB rate hike, at least the expected rate hike, on Thursday. We also get CPI on Friday in the United States and then a Federal Reserve potential rate hike next week.
There’s a lot going on in the short term. It has held up fairly well. I do have to say that, but it just doesn’t have any momentum. Short-term traders are probably attracted to the somewhat well-defined range at the moment, as the markets are simply not giving bigger moves currently.
Silver (XAG/USD) pulls back on Tuesday after failing to hold its earlier advance. At the time of writing, the metal trades around $66 after reaching an intraday high near $67.19. The retreat comes as rising Oil prices add to concerns that inflation could stay elevated and encourage central banks to keep borrowing costs high.
Higher interest rates tend to weigh on Silver because the metal offers no yield. Expectations of tighter Federal Reserve (Fed) policy have strengthened since Friday’s upbeat US employment report, with the CME FedWatch tool showing around a 60% chance of a 25-basis-point rate hike next week.
However, the downside in Silver appears limited as the US Dollar (USD) stays under pressure. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 98.82 after briefly reclaiming 99, hovering near its lowest level in more than two weeks.
Attention now turns to the US Producer Price Index (PPI) on Thursday and Consumer Price Index (CPI) on Friday. The figures will help determine whether the Fed raises interest rates at its September 15-16 meeting.
Technical Analysis
On the daily chart, XAG/USD holds above the 50-day simple moving average (SMA) at $62 and a dense Fibonacci support band clustered between the 61.8% retracement at $60.97 and the 38.2% level at $64.80, suggesting downside attempts remain cushioned for now.
However, price still trades below the 100-day SMA at $67.28 and the 23.6% Fibonacci retracement at $67.17, keeping the broader tone neutral, with the Relative Strength Index (RSI) around 53 and a slightly negative Moving Average Convergence Divergence (MACD) hinting at fading upside momentum.
On the topside, initial resistance is seen at the 23.6% Fibonacci retracement at $67.17, closely followed by the 100-day SMA at $67. A daily close above this confluence would open the way toward the next hurdle at the prior swing anchor near $71 and then the 200-day SMA at $72.
On the downside, immediate support comes from the 38.2% retracement at $64.80, with further cushions at the 50% level at $62.89 and the 61.8% retracement at $60.97. A break below this band would expose deeper Fibonacci support at $58.24 and $54.77, where the 50-day SMA at $62 currently underpins the broader consolidation.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver prices (XAG/USD) fell on Tuesday, according to FXStreet data. Silver trades at $65.88 per troy ounce, down 0.55% from the $66.24 it cost on Monday.
Silver prices have decreased by 7.33% 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 66.72 on Tuesday, up from 66.61 on Monday.
Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver (XAG/USD) is trading flat at the $66.00 area on Tuesday, holding minor gains on the weekly chart after bouncing from the mid-range of the $64.00s last week. The precious metal is drawing some support from a soft US Dollar, as US markets return from a long weekend, with traders awaiting Friday’s US Consumer Price Index (CPI) release to assess the outcome of next week’s Federal Reserve (Fed) meeting.
Analysts at HSBC observe that a combination of “weaker US data, persistent inflation concerns, policy credibility questions, and political risks all weigh on the Dollar, fueling the debasement conversation.” However, they note that Fed Chairman Warsh’s Jackson Hole remarks marked an important turning point, as his speech “helped ease one key part of that story by restoring confidence in the Fed’s commitment to fight inflation.”
This has “helped reduce the risk that weak policy credibility would become a lasting drag on the Dollar and denting the debasement narrative, at least for now,” say the HSBC experts. Even so, the bank cautions about "broader structural concerns, especially around US fiscal sustainability, which could still return and weigh on the Dollar yet again.”
Technical Analysis: Looking for direction halfway through the mintly range
XAG/USD trades at $66.02 halfway through the monthly range, roughly between $63.00 and $71.00, just below the key 200-day Simple Moving Average, at the $73.00 area. Momentum indicators in the daily chart are neutral, with the Relative Strength Index (14) around 52 and the Moving Average Convergence Divergence (MACD) slipping modestly below zero, all in all reflecting a lack of clear bias.
Initial resistance is seen at the August 25 and 27 lows around $67.40, ahead of the June 12 and August 28 highs, between $71.12 and $71.56, and the mentioned 200-day SMA at $72.95.
On the downside, Friday's low, near $64.75, might hold bears ahead of a key support level in the $63.00 area. A break of that level would confirm a bearish Head & Shoulders (H&S) pattern, increasing pressure towards the August 6 low at $60.87.
(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.
Gold, silver correlations with dollar near historical extremes
DXY sits just above an important support zone
US inflation next key risk event for markets
Disorderly yen carry trade unwind remains a left-tail risk
Gold and silver have essentially become a play on directional movements in the US dollar over the past month, and especially the past fortnight, with the strength of the inverse relationship pushing towards historical extremes.
Dollar relationship moves into rare territory
While the inverse relationship between gold, silver and other precious metals with the US dollar has been evident for decades, the strength of the relationship is unusually high right now.
Source: LSEG
Over the past 10 trading days, gold’s correlation with DXY has fallen to around -0.88, while silver’s stands at -0.83. Those readings sit around the 3rd percentile for gold and 4th percentile for silver relative to their respective histories, meaning the inverse relationship has only been stronger during a very small proportion of comparable windows.
The 20-day relationship is also tight, with gold at around -0.76 and silver at -0.73, ranking near the 6th and 5th percentiles respectively.
With the DXY just above an important support level, should that extreme relationship be maintained, a downside break in the DXY points to the increased risk of renewed upside across the precious metals complex.
Yen strength adds pressure to the dollar
Source: Tradingview
DXY finds itself struggling beneath the 200-day moving average, having slid back beneath it late last week, and is now perched above a support zone comprising the May 29 low of 98.75, along with the 50% retracement of the 2026 low-high at 98.68.
There were two unsuccessful probes beneath the zone back in August, but with the oscillators rolling over, indicating downside momentum is building again, the risk of a downside break appears to be growing, especially with the Japanese yen continuing to strengthen on Tuesday, seeing USD/JPY hit levels not seen since February.
Should the unwind be sustained, it would only add to downside risk for the broader DXY index, especially should the euro join the move.
Gold wedged between key levels
Source: Tradingview
Early gains in Asia have reversed in the latter parts of the session, with the push higher stalling just beneath the confluence of the August downtrend and horizontal resistance at $4,450 an ounce. Those levels are the immediate focal point overhead.
Underneath where the price now trades, $4,367 is the first level on the radar given it acted as support and resistance on multiple occasions going back to the early parts of this year. Further below, the 23.6% Fib retracement of the January to June low-high is located at $4,333 an ounce. Dips beneath that level, down to the early September low of $4,283, have made for good buying over recent months.
The message from the oscillators is one of neutrality. RSI (14) sits just beneath the 50 while MACD is running parallel to the signal line, sitting just in negative territory.
With the technical picture for gold offering little from a directional breakout perspective, dollar performance around the US inflation data on Thursday and Friday may be influential in determining which direction the price shifts next.
Silver triangle points to breakout risk
Source: Tradingview
Like gold, silver has staged a sizable reversal late in the Asian session, mirroring similar price action in Asian tech stocks that opened strongly before gains were slowly whittled away.
From a technical perspective, the price on the four-hourly continues to coil in an ascending triangle, with moves above $67 towards $67.50 resistance capping gains for the moment, while dips towards the uptrend established in early September continue to attract buying.
While ascending triangles are often associated with bullish breakouts, I would not be rushing to establish longs without a clear and sustained push above $67.50, given the iffy price beneath it recently.
The cautious view is only strengthened by the risk of forced yen carry trade unwinds, some of which have likely found their way into the precious metals space, creating the risk of disorderly downside moves across the precious metals complex. Whichever direction the price breaks from the structure may be informative as to where directional risks lie over the medium term.
Overhead, silver struggled underneath $70 in late August, and while there was one bullish breakout that eventually occurred, it stalled at $70.90, a level that acted as support and resistance on multiple occasions going back to late April.
On the downside, $65.50, the September 4 low of $64.75, and $63.30 are the focal points before $62.90 comes into view, another support and resistance level going back to earlier this year.
The message from the oscillators is neutral with RSI (14) sitting at 48 while MACD is flatlining above the signal line, holding just in positive territory. Focus should therefore be on price rather than adoption of a specific directional bias, with DXY gyrations another useful input when assessing potential setups.
Silver price (XAG/USD) is up 1.25% to near $67.00 during the Asian trading session on Tuesday. The white metal strengthens as the US Dollar (USD) and United States (US) Treasury Yields come under pressure, with investors shifting their focus to the Consumer Price Index (CPI) data of August scheduled for Friday.
As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.1% lower to near 98.83 even after recovering some of its early losses. 10-year US Treasury Yields are down 0.17% to near 4.77%.
Lower US bond yields result in an improvement in the appeal of non-yielding assets, such as Silver.
Investors will pay close attention to the US CPI data to get fresh cues regarding the Federal Reserve’s (Fed) monetary policy outlook.
TD Securities sees core inflation contained even as headline CPI firmsAccording to TD Securities, the August CPI report is likely to show that “underlying inflation stayed under control,” with core prices “rising 0.19% m/m (2.3% y/y).” The bank expects the “services segment” to be the main driver of gains, while “core goods prices likely acted as a drag by posting a modest m/m drop.”
In contrast, TD looks for “headline CPI” to post “a stronger 0.37% m/m (3.4% y/y) due to rising energy prices and a slight pickup in food inflation.” The bank also cautions that “risks to our forecasts” are “skewed to the upside,” noting that its projections assume “a number of large price declines in tariff-exposed goods categories, including apparel and household goods.”
Before the US consumer inflation data, investors will focus on the Producer Price Index (PPI) data of August, which will be released on Thursday.
Silver Technical Analysis
In the daily chart, XAG/USD trades at $66.97. The pair holds a constructive near-term bias as price remains above the nine-day Exponential Moving Average (EMA) at $66.49, suggesting the recent pullback is being supported rather than reversed. The Relative Strength Index (RSI) around 55 keeps a mildly positive tone, hinting that bullish momentum is still intact without yet pushing into overbought territory.
On the downside, initial support is aligned with the nine-day EMA at $66.49, where a daily close below would hint at a deeper consolidation toward lower levels not yet defined by the present indicators. Looking up, the August high at $71.12 could act as a key hurdle.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
(This story was corrected at 04:47 GMT on Tuesday to say in the title that Silver Price Forecast: XAG/USD jumps to near $67, not $37)
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.
Spot silver daily chart shows larger trend. Source: TradingView 200-Day Average Remains Critical Another pattern unfolding is that the current advance from the July low represents the first pullback to test the 200-day moving average as resistance since silver broke below it in June. So far, resistance was seen during the advance two weeks ago. However, another upswing could develop, giving silver another opportunity to test that major long-term trend indicator. Even if the 200-day average is eventually reclaimed, further resistance remains likely during this initial approach to the average.
Channel Points Toward Higher Targets There are also early signs of a rising channel forming since the July bottom. Notably, silver could advance toward the $71.56 to $72.81 range while remaining inside the boundaries of the channel. Another potential upside target is the confluence of several indicators, including the upper downtrend line, the 61.8% Fibonacci retracement of the prior decline at $76.16, and the upper boundary of the rising channel.
Weekly Signal Raises Stakes Finally, the weekly chart shows that a bullish doji hammer candlestick pattern formed last week. Therefore, a breakout above last week’s high of $67.47 would not only confirm renewed short-term strength but also provide a bullish reversal signal on the weekly chart. That means that a breakout above last week’s high of $67.47 noted above, will also provide a bullish reversal signal on the weekly chart. That should reinforce the bullish reversal setup signaled by the July support test and increase the significance of the current advance.
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Dominant Driver Is Higher US Rate Expectations Following the Friday jobs number that was much stronger than anticipated, rising 162,000 versus the 56,000 expected. This is pushing the market implied rate hike probability of a September Fed hike to about 60%. That lifts yields, which creates a headwind for silver most of the time.
Yielding metals and assets in general will shy away from that. Right now, it does have the longer-term industrial supply argument underneath it, keeping it somewhat firm. And I personally do believe that silver will continue to be in demand over the next several years.
The supply just isn’t growing quickly enough to meet demand, but that doesn’t do a lot for short term price.
The higher oil prices could keep energy inflation elevated, and that is part of what’s going on with interest rates around the world. So with that, it’s a scenario where interest rates remain elevated, and silver remains somewhat compressed.
We’re hanging around the 50-day and 200-day EMAs, which typically causes some noise for short-term hiccups anyways, so marry that with the fact that it’s a holiday. It’s pretty neutral at the moment.
Silver (XAG/USD) trades under pressure on Monday, falling 0.79% on the day to around $65.70 at the time of writing. The white metal is feeling the impact of the strong US employment report, which has revived expectations of an interest rate hike by the Federal Reserve (Fed) and supports the US Dollar (USD).
The Nonfarm Payrolls (NFP) report released on Friday showed that the US economy added 162K jobs in August, well above the market consensus of 56K. The Unemployment Rate remained unchanged at 4.1%, in line with expectations, while annual Average Hourly Earnings growth eased slightly to 3.1% from 3.2% previously.
These figures reinforce the view that the US labor market remains strong enough to allow the Fed to maintain a restrictive monetary policy stance. Inflation risks stemming from higher energy prices are also contributing to expectations of a potential interest rate hike as soon as the central bank's next meeting.
The prospect of higher US interest rates is a negative factor for Silver, which does not offer any yield. At the same time, it provides support to the US Dollar, making the precious metal more expensive for investors using other currencies.
However, expectations of monetary tightening remain dependent on incoming data. Fed Governor Christopher Waller said on Thursday that he would favor keeping interest rates unchanged if upcoming indicators confirmed that inflationary pressures were easing.
Investors' attention therefore turns to the US Producer Price Index (PPI) and Consumer Price Index (CPI), due on Thursday and Friday, respectively. These releases should provide fresh clues about the inflation trajectory and could play a key role in shaping expectations for the Fed's next policy decision.
Meanwhile, escalating tensions between the US and Iran in the Strait of Hormuz keep a geopolitical risk premium embedded in financial markets. US forces struck three Iranian Oil tankers on Saturday, while Iran's Islamic Revolutionary Guard Corps said it had targeted six vessels in retaliation.
The exchange of attacks is fueling concerns over the security of shipping through the strategic waterway and the risk of prolonged disruptions to energy supplies from the Middle East. This backdrop supports energy prices and reinforces inflation risks, potentially keeping expectations of restrictive Fed monetary policy elevated.
Geopolitical tensions could nevertheless limit Silver's downside by simultaneously fueling demand for safe-haven assets. The white metal therefore remains caught between potential support from defensive flows and pressure from higher US interest rate expectations and a stronger US Dollar.
Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver prices (XAG/USD) fell on Monday, according to FXStreet data. Silver trades at $65.90 per troy ounce, down 0.47% from the $66.21 it cost on Friday.
Silver prices have decreased by 7.29% 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 66.94 on Monday, broadly unchanged from 66.91 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 (XAG/USD) nudges lower on Monday, hitting session lows in the mid-$65.00s after a reversal from the $68.00 area. Precious metals are struggling on Monday, as US Nonfarm Payrolls (NFP) figures beat expectations last Friday, boosting hopes that the US Federal Reserve (Fed) will hike rates next week, although the market awaits Friday’s Consumer Price Index (CPI) release for confirmation.
US NFP figures showed a 162K increase in net employment in August, well above the 57K forecasted by market analysts, easing concerns about a softening labour market. The data prompted investors to ramp up bets on a Fed rate hike at the September 15-16 monetary policy meeting to a 58% chance, from around 50% before the release, according to data from the CME FedWatch Tool.
Analysts at ING point to Friday’s August CPI release as the main focus this week, where they see “month-on-month readings at 0.4% and 0.2% for headline and core (inflation) should be enough to sway the Fed towards a 25bp rate hike on 16 September,” a move they note is “just priced with a 58% probability at the moment.”
Technical Analysis: The neckline of a H&S formation lies around $63.30
XAG/USD trades at $65.79, keeping a bearish near-term tone as it holds well below the 200-day simple moving average (SMA). Friday's reversal from $68.00 looks like the second shoulder of a bearish Head & Shoulders (H&S) formation, while momentum indicators in the daily chart highlight growing bearish pressure.
The 14-period Relative Strength Index (RSI) is hovering near a neutral 52 zone, and the Moving Average Convergence Divergence (MACD) stays in negative territory, which suggests that upside attempts could remain capped.
On the downside, the pair might find support at Friday's low near $64.75, although the key level is the September 2 low, at $63.30, which would confirm the H&S pattern and add pressure toward the August 6 low, near $61.00.
On the topside, initial resistance emerges at a previous support area around $67.50, which held bulls on Friday. Further up, the mid-June highs around $71.60 and the 200-day SMA at $72.90 are likely to pose a significant challenge for bulls.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver price (XAG/USD) inches higher after opening at a bearish gap, remaining in negative territory and trading around $66.10 per troy ounce during Asian hours on Monday. Silver prices remain under pressure as stronger-than-expected United States (US) employment data fuels expectations of an imminent Federal Reserve interest rate hike.
According to the US Bureau of Labor Statistics, August Nonfarm Payrolls rose by 162,000, significantly outperforming the 56,000 forecast. Meanwhile, the unemployment rate held steady at 4.1%, and annual wage growth slowed less than anticipated to 3.1%. Following these figures, traders rapidly priced in tighter monetary policy, with the CME FedWatch tool indicating a 58.3% probability of a 25-basis-point Fed rate increase in September.
Hammack flags need for more Fed tightening as inflation stays too high Fed’s Hammack delivered a notably more hawkish message, with a 9.2/10 FXS Speechtracker score standing well above the 7.6/10 historical average, signaling a clear shift toward tighter policy rhetoric. The assertion that Fed policy is “not restrictive” and that inflation is “too high,” combined with local contacts indicating “now is time for Fed to hike,” underscores a bias toward additional rate increases and challenges any market expectation of an imminent pivot. This tone supports a stronger Dollar narrative as markets reprice the path of policy toward further tightening.
The FXS Fed Sentiment Index rose by 1.14 points to 125.72, reinforcing that overall Fed communication remains firmly in hawkish territory according to the FXS Speechtracker. With the index well above the neutral 100 mark, the latest move suggests incremental but meaningful reinforcement of higher-for-longer rate expectations, a backdrop typically supportive for the Dollar and a headwind for risk-sensitive currencies.
Adding to Silver's headwinds, rising crude oil prices have stoked fears of rekindled inflationary pressures following a geopolitical escalation between the US and Iran over the weekend. The conflict intensified after the US targeted three Iranian tankers in response to missile attacks on its warships, leading Tehran to establish a new restricted zone around the Strait of Hormuz.
Technical Analysis:In the daily chart, XAG/USD trades at $66.10. The near-term tone is neutral as price holds above the longer-term 50-day Exponential Moving Average (EMA) but sits just under the shorter-term nine-day EMA, hinting at consolidation after the recent advance. The 14-day Relative Strength Index (RSI) at 52.70 stays slightly above neutral, suggesting modest positive momentum without entering overbought conditions.
On the topside, immediate resistance emerges at the nine-day EMA around $66.33, and a clear break above this dynamic cap would be needed to revive a stronger bullish extension. On the downside, initial support is seen at the 50-day EMA near $64.91; a daily close below this level would expose a deeper corrective phase, while holding above it would keep the broader constructive structure intact.
XAG/USD: Daily Chart(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Daily price chart for Silver futures showing price at 65.800, resting right along the 200 EMA (65.660) and the 50 EMA (65.200). Source: TradingView The silver market has fallen pretty significantly during the trading session on Friday as the jobs number came out well over anticipated results. The expected number was right around 55,000 jobs added last month in America, ended up being 162,000, a huge miss, and to the upside. So that has traders worried about the potential of inflation, higher interest rates coming out of the Federal Reserve, and that typically is bad for silver. That explains part of what we’re seeing here.
Moving Average Support and Labor Day Volatility Ultimately though, it’s a market that is still well within the range of normalcy right around the 200-day EMA, as well as the 50-day EMA. So, as poor as the reaction was initially, at least so far, it doesn’t seem to be irreversible damage.
Silver prices (XAG/USD) fell on Friday, according to FXStreet data. Silver trades at $66.67 per troy ounce, down 0.46% from the $66.98 it cost on Thursday.
Silver prices have decreased by 6.21% 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 66.97 on Friday, up from 66.79 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) retreats to near $66.30 in the European trading session on Friday after posting a fresh five-day high near $68.00. The white metal comes under pressure ahead of the United States (US) Nonfarm Payrolls (NFP) data for August, which will be published at 12:30 GMT.
According to TD Securities, the US labour market is set for a partial recovery in August, with the bank forecasting that "August NFP [will] rebound to 95k after July posted a decline of 23k." The firm also expects limited movement in joblessness, noting that "the UE rate likely went sideways at 4.1% with balanced risks."
Investors will closely track the US NFP data to get fresh cues regarding the Federal Reserve’s (Fed) monetary policy outlook. In TD’s view, a modestly hawkish employment report will reaffirm the Fed's attention on inflation, but it will be by itself unlikely to push the Committee towards hikes, suggesting that even a stronger print would not materially alter the current policy stance.
Meanwhile, traders have diminished Fed interest rate expectations after comments from Governor Christopher Waller on Thursday, in which he said that recent data shows signs of disinflation.
Analysts at Commerzbank also said that lingering uncertainty over the US rate outlook was “underscored yesterday by comments from Fed Governor Christopher Waller,” who, in their words, signalled that “a rate hike is by no means necessary.” They add that Waller “also confirmed what we have been arguing: next week’s inflation data are likely to be the key input for the Fed’s upcoming policy decision,” a shift in emphasis that, in their view, “further [reduces] the significance of today’s employment report.”
Silver Technical Analysis
In the daily chart, XAG/USD trades at $66.73, maintaining a bullish near-term bias as it holds above the 20-day exponential moving average (EMA) at roughly $65.71. The metal is advancing within an uptrend structure, with price comfortably supported by this short-term EMA, while the Relative Strength Index (RSI) around 55 suggests moderate bullish momentum without yet signaling overbought conditions.
On the downside, immediate support is seen at the 20-day EMA near $65.71, where a break would expose the white metal to a deeper correction. Looking up, the August high at $71.12 is 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.
Silver (XAG/USD) edges lower during the Asian session on Friday, snapping a two-day winning streak to the weekly high set the previous day. The white metal, however, lacks bearish conviction and currently trades below the $67.00 mark, down 0.30% for the day, as traders await the release of the closely watched US Nonfarm Payrolls (NFP) report.
Heading into the key data risk, receding bets for an interest rate hike by the US Federal Reserve (Fed) in September and sliding US bond yields keep the US Dollar (USD) near its lowest level in over a week. This, in turn, is seen as a key factor acting as a tailwind for USD-denominated commodities, including the XAG/USD. That said, the technical setup warrants some caution for bullish traders and positioning for an extension of this week's goodish rebound from the $63.30 area.
The XAG/USD trades below the 200-day Simple Moving Average (SMA) at $72.84 and the mid-range Fibonacci retracement level of the May-July decline. Moreover, mixed technical momentum indicators suggest that rallies remain capped for now. In fact, the Relative Strength Index hovers in the mid-50s and the Moving Average Convergence Divergence (MACD) slips into negative territory, hinting at waning upside pressure and validating the near-term cautious outlook.
On the topside, immediate resistance emerges at the 38.2% retracement at $67.83, followed by a more significant barrier at the 50.0% retracement at $71.89 and the 200-day SMA at $72.84. A sustained strength above this cluster would be needed to ease the broader downside bias and expose the 61.8% level near $75.95. On the downside, initial support is seen at the 23.6% Fibo. level at $62.81, with a deeper floor at the prior cycle low around the 0.0% retracement at $54.69, where buyers would be expected to re-emerge if selling accelerates.
(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.
The silver price gained 15.6% in August, beating gold and major equity benchmarks in Deutsche Bank's selected cross-asset performance table. The silver price in US Dollars rose over 15% in August, topping Deutsche Bank's selected cross-asset table and comfortably outperforming gold and major equity markets.
Our own XAG/USD data recorded a monthly gain of 15.5%, with silver climbing from around $57.65 to $66.58.
Gold prices gained 9.7% in Deutsche Bank's comparison, while the KOSPI advanced around 9% and the S&P 500 returned 2.7%.
Silver therefore beat gold by almost six percentage points and outperformed the S&P 500 by nearly 13 points.
Image: XAG/USD 48-hr chart The latest 48-hour chart shows silver recovering from $63.40 to around $66.32, leaving the metal 2.5% above its opening level despite sharp swings.
Silver Price Tops Deutsche Bank's August Table Deutsche Bank described August as a broadly positive month for financial markets.
“At first glance, August was a solid month. There was no late-summer wobble of the sort seen in recent years, and the economic data remained strong.”
Stocks benefited from resilient economic figures and a strong company earnings season, but their returns were well below silver's.
“That resilient macro backdrop, combined with a strong earnings season, helped equities deliver solid gains. The S&P 500 returned +2.7% over the month, with technology stocks leading the way as the Magnificent 7 rose +4.4%.”
Even the Magnificent Seven's 4.4% return was less than one-third of silver's advance.
The KOSPI came closest among the major equity benchmarks in the chart, while gold finished second overall at just under 10%.
Treasury Buybacks Lift Precious Metals Deutsche Bank connected the precious-metals rally with concerns about financial repression after the US Treasury announced increased purchases of longer-dated government debt.
“That was partly due to the US Treasury Department’s announcement that it would increase buybacks of longer-dated Treasuries. The move prompted a temporary pullback in longer-dated US yields, but renewed concerns about financial repression also helped lift gold prices by +9.7% in August, while silver gained +15.6%.”
The August rally was not a straight line.
Silver reached a monthly high above $71 before retreating, and the metal fell 3.6% on 1 September as changing Federal Reserve expectations triggered another bout of volatility.
Prices have since rebounded above $66, although XAG/USD remains below its late-August peak.
That choppy performance follows the sharp swings discussed in our earlier coverage of gold and silver prices after Fed hike risks returned.
Deutsche Bank's ranking applies only to the selected financial assets in its chart.
Some agricultural commodities discussed separately performed even better, with sugar up 21.5%, wheat gaining 18.3% and corn rising 16.8%.
Silver's next moves will depend on Federal Reserve rate expectations, the US Dollar and changes in long-dated Treasury yields.
Investor demand, precious-metals flows and the market's response to upcoming US employment and inflation data will also determine whether the August outperformance can be sustained.
Silver price advances by some 2.45% on Thursday, boosted by dovish comments from Fed Governor Waller, which pushed the US Dollar and US Treasury yields lower. The XAG/USD trades at $66.90, after reaching a high of $67.48.
XAG/USD Price Forecast: Technical OutlookThe white metal is neutral to downward biased. After hitting an all-time high of $121.66, the Silver price respects the market structure of lower highs and lower lows, indicating that sellers are in control.
Momentum shifted in favour of bulls in the short-term as depicted by the Relative Strength Index (RSI), which dipped to its 50-neutral level before bouncing higher. Therefore, the path of least resistance is upwards.
To resume the uptrend, Silver must clear the 100-day Simple Moving Average (SMA) at $67.66. A breach of the latter will expose the August 28 swing high of $71.12, followed by the 200-day SMA at $72.78. If those two levels are taken out, buyers could challenge the May 25 high at $78.83, ahead of $80.00.
On the other hand, if XAG/USD struggles to break above the 100-day SMA, sellers could drive prices towards the September 2 swing low of $63.32. A decisive break will expose the 50-day SMA at 61.85, before the precious metal registers a leg lower towards $60.00.
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.
Federal Reserve Policy and the Jobs Report The Federal Reserve, of course, recently had comments coming from Kevin Warsh that the Fed was possibly even going to have to tighten further. This jobs report number, if it ends up being hotter than anticipated, could reinforce that, and it could cause major problems for silver, as well as other commodities.
Conversely, if that jobs report comes out cooler than anticipated, the market could turn around and see silver go flying towards the upside again as traders may change their bets on Federal Reserve policy.
Right now, the market is in a bit of flux. It’s almost as if some people don’t believe him, and the bond market certainly doesn’t. But at this juncture, traders will be very cognizant of the next data point, making Thursday a potentially choppy session.
Silver prices (XAG/USD) rose on Thursday, according to FXStreet data. Silver trades at $65.88 per troy ounce, up 0.87% from the $65.31 it cost on Wednesday.
Silver prices have decreased by 7.32% 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 67.35 on Thursday, up from 67.18 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.
TL;DR: Silver has rebounded from 63.27 as the macro pressures behind its selloff simply stopped worsening, not reversed — leaving the 62.54–62.92 support cluster as the line that decides whether this is the start of the next leg higher or just a pause before deeper support is tested.
Silver Has Found Relief, Not Yet a New Bullish Story Silver has rebounded after sliding from 71.16 to 63.27, but recovery is not being driven by any obvious new silver-specific catalyst. Instead, two macro pressures behind selloff have simply stopped getting worse. US 10-year yield has flattened around 4.8% after its recent rise, while Brent has paused following its spike toward $97. Weak ADP employment at 38K, slowest since January, also interrupted momentum toward still more aggressive Fed pricing ahead of Friday’s NFP.
That makes latest move a pressure-easing story rather than a macro reversal. Fed is not suddenly dovish, yields have not collapsed and geopolitical risk around Iran has not disappeared. What changed is pace. And that pause arrived exactly where Silver needed it most technically.
62.54–62.92 Is Where Bull Case Must Hold Silver’s selloff stopped at 63.27, just above a particularly important support cluster. 62.54 is prior wave-four low, while 62.92 is 50% retracement of entire 54.77–71.16 advance. That makes area more than another chart level—it is where bullish interpretation of latest rally either survives or begins to break down.
As long as 62.54–62.92 holds, rise from 54.77 can still be treated as a five-wave advance, with decline from 71.16 representing correction. Break above 67.46 would strengthen that view and turn attention back toward 71.16. But a sustained break below 62.54 would challenge count and expose 60.92, the 61.8% retracement. Below there, risk of revisiting 54.77 would rise substantially.
Daily chart is also giving bulls something to work with. Silver has recovered above 55-day EMA around 64.92, keeping broader rebound structure intact for now. If 54.77 ultimately proves to be durable medium-term low, a later break of 71.16 would reopen 38.2% retracement of 121.64 to 54.77 at 80.32 at a later stage. But if price loses 55D EMA again and then breaks 62.54, argument that current weakness is merely corrective becomes much harder to defend.
Friday Decides Whether This Was a Floor or Just a Bounce That puts unusual weight on Friday’s payroll report. Consensus is around 58K, with unemployment expected at 4.1%. A weak NFP would reinforce current easing in Fed pressure, likely pull yields lower and give Silver a cleaner route through 67.46 toward 71.16. A strong report could revive hawkish repricing and force 62.54–62.92 support to prove itself again.
Iran and oil provide second live risk. If escalation pushes Brent back through $97 and toward $102–104, renewed inflation fears could pressure Silver even if Fed expectations are otherwise unchanged. Continued stabilization would make current rebound easier to sustain.
So technical question is unusually clean. Silver has reached its line in the sand. Holding 62.54–62.92 keeps five-wave recovery from 54.77 alive; losing it opens 60.92 and potentially much lower levels. NFP will tell us whether this week’s rebound is beginning of next leg higher—or simply a pause before that support is tested properly.
Key Takeaways Silver’s rebound from 63.27 reflects easing macro pressure — a flattening 10-year yield and a paused Brent rally — rather than any new bullish catalyst of its own. The 62.54–62.92 zone combines the prior wave-four low and the 50% retracement of the 54.77–71.16 advance, making it the key level for the bullish five-wave count. A break above 67.46 would strengthen the bullish case toward 71.16, while a sustained break below 62.54 exposes 60.92 and raises the risk of a retest of 54.77. Friday’s NFP (consensus 58K) is the key catalyst: a weak print supports a cleaner path higher, while a strong print would force the support cluster to prove itself again. Renewed Iran-driven oil escalation toward $102–104 is a second live risk that could pressure Silver independent of how Friday’s jobs data lands.
ActionForex
ActionForex.com was set up back in 2004 with the aim to provide insightful analysis to forex traders, serving the trading community for two decades. We started providing only a daily and a mid-day report, now known as Action Insights. Gradually, we added a lot more in-house contents to the site. Technical Outlook section was expanded to cover more pairs. In addition to that, Top Movers, Heat Map, Pivot Point Charts and Pivot Meters, Action Bias and Volatility Charts, are tools used by traders from all over the world.
Silver price (XAG/USD) struggles to extend Wednesday’s strong recovery move above $66.25 during the European trading session on Thursday. The white metal could remain sideways as investors await the United States (US) Nonfarm Payrolls (NFP) data for August, which will be released on Friday.
US jobs rebound seen keeping Fed on hold despite hawkish risksAccording to TD Securities, August Nonfarm Payrolls are expected to “rebound to 95k after July posted a decline of 23k,” with the firm cautioning that “risks to our payrolls forecasts appear hawkish, and we would not rule out an outsized positive surprise.” The unemployment rate is projected to have “gone sideways at 4.1% with balanced risks,” suggesting only limited change in headline labour market conditions.
Investors will pay close attention to the US NFP report as it is expected to influence market expectations for the Federal Reserve’s (Fed) monetary policy outlook.
Analysts at TD say that “a modestly hawkish employment report will reaffirm the Fed's attention on inflation, but it will be by itself unlikely to push the Committee towards hikes,” as they “continue to expect that inflation data can print modestly, allowing the Fed to keep rates on hold for now.”
According to the CME FedWatch tool, traders see a two-in-three chance that the Fed will increase interest rates in the September policy meeting.
Elsewhere, higher oil prices due to restricted energy shipments through the Strait of Hormuz, a vital passage to almost one-fifth of global energy supply, could fizzle out the recovery move in the Silver price.
Higher oil prices prompt global inflation expectations, a scenario that increases fears of interest rate hikes from central banks. Such a case bodes poorly for non-yielding assets, like Silver.
Silver Technical Analysis
In the daily chart, XAG/USD trades at $66.00. The pair holds above the 20-day Exponential Moving Average (EMA) at $65.51, keeping the near-term bias constructive as price extends its recovery from the mid-$50s area.
The Relative Strength Index (14) at 53.04 sits in neutral territory but leans higher, which suggests buyers still have the upper hand without the market being overstretched.
On the downside, immediate support is seen at the 20-day EMA at $65.51, where a deeper pullback would be expected to attract fresh demand. Looking up, the August high near $71 is expected to remain a key barrier.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver price (XAG/USD) extends its Wednesday recovery move on Thursday, trading 0.67% higher at around $65.70 during the European trading session. The white metal strengthens as the US Dollar (USD) declines further due to moderate job demand in the United States (US) private sector.
As of writing, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades close to Wednesday’s low near 99.45.
On Wednesday, the US ADP reported that the private sector created 38K fresh jobs in August, fewer than 47K estimates and the prior release of 46K. This has created an unfavorable backdrop for the Nonfarm Payrolls (NFP) data for August, which will be published on Friday.
Technically, a lower US Dollar makes the Silver price a favorable risk-reward bet for investors.
Meanwhile, a pause in the rally in US Treasury Yields has also offered some support to non-yielding assets, such as Silver.
10-year US Treasury Yields have corrected to near 4.77% after posting a fresh high of 4.82%, a level last seen in October 2023.
Silver Technical Analysis
In the daily chart, XAG/USD trades at $65.92. The pair holds above the 20-day Exponential Moving Average (EMA) at $65.50, which suggests a constructive near-term bias as price continues to respect trend support.
The Relative Strength Index (14) at 52.85 sits in neutral-to-positive territory, hinting that bullish momentum is present but not overstretched after the latest advance.
On the downside, immediate support emerges at the 20-day EMA at $65.50, where buyers are likely to defend the ongoing upswing if a pullback unfolds. Looking up, the August high at $71.12 is the key resistance zone.
(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.
Technical Outlook and Key Silver Levels The US dollar shrinking helps as well, so pay attention to that. But ultimately, we’re sitting right here at an area where you would expect to see a certain amount of support anyway, so it’s not a huge surprise. Whether or not we get momentum, that’s a completely different question.
But clearly, it looks like the selling has at least abated a bit for the short term, and this is the first step in trying to turn things around. Hesitation is a word I could use at the moment here.
Friday’s jobs number will loom large here. If we get an extraordinarily weak jobs number, traders may start to try to price in the idea that the Federal Reserve may not be able to tighten any further. And if that’s the case, things could get interesting here.
Sources: World Silver Survey 2026, Appendix 14, Metals Focus and the Silver Institute The rows add to 846.7 Moz against a stated total of 846.6 Moz, and the percentages to 99.9%, both from rounding in the survey’s own appendix.
Only 26.1% of the world’s mined silver comes from mines that exist to produce silver. The rest arrives as a credit alongside something else, and the largest single source is lead and zinc mines at 249.1 Moz. When a zinc mine decides how much ore to process, it is also deciding, without thinking about it, how much silver reaches the market that year.
That is why the price signal breaks. A higher silver price is supposed to bring out more supply. It cannot do much when nearly three quarters of the metal is produced by operators whose budgets, mine plans and board decisions all turn on the price of something else.
From Company Filings to a Global Data Series Until late August, that argument rested on individual company filings: a seismic event at a Swedish mine, an ore-mix change at a Peruvian one, a closure in Australia. All of it real, none of it adding up to a measurement of the whole market.
Then the International Lead and Zinc Study Group published its first-half 2026 data. World zinc mine production fell 2.6%. World lead mine production fell 3.0%. The two metals that between them account for the largest single source of byproduct silver fell together in the same six months, with the declines concentrated in the biggest producers and only partly offset by increases elsewhere.
Sources: ILZSG August 2026 press release | World Silver Survey 2026, Metals Focus and the Silver Institute The study group measures lead and zinc tonnage. It does not measure silver. The table above applies those percentage changes to last year’s silver base, which makes it a scenario rather than a measurement, and the midpoint is a plain average of the two rather than a silver-weighted figure. Silver grades vary between mines, and they do not always move with tonnage.
Boliden’s revised plan for Garpenberg shows why that caveat is needed. After a seismic event in March, 2026 guidance moved to 1.5 million tonnes milled at 100 grams of silver per tonne, from 3.7 million tonnes at 95 grams. Tonnage fell 59% while the silver grade guidance went up. The measured figure for 2026 arrives in next year’s survey, not this one, and I will record it in the Silver Catalyst when it does, whichever way it goes.
What This Means to Silver Investors On the supply side this is good for silver, and it is worth being precise about which part is good.
The mechanism now has better evidence behind it. Two mine supply series falling together, in the ore types that carry the most byproduct silver, is the first time this argument has rested on a primary global statistical release rather than on a run of company disclosures. A record-low negative treatment charge is a market price saying the same thing.
The scale is smaller than the headline suggests. Roughly 7 Moz annualised at the midpoint is 0.83% of the 844.1 Moz of mine supply that Metals Focus and the Silver Institute forecast for 2026. It does not break the market this year, and it should not be presented as though it does.
What it does change is the shape of the problem. The market is running into a sixth consecutive year of structural deficit, forecast at 46.3 Moz for 2026 by Metals Focus and the Silver Institute. The ordinary way a shortage resolves is that a higher price pulls out more supply. This data shows why that route is partly closed: a higher silver price does not directly determine output at these lead and zinc operations, because none of the people running them is deciding anything based on it.
The honest counterweight is that Western inventories have not tightened. COMEX registered stock rose over the past month, London vaults built for a third consecutive month to 28,213 tonnes at the end of July, and the September futures contract reached first notice day without visible stress. Whatever is happening in the ore is not yet showing up in the metal that Western buyers can touch. That gap is the thing to watch, and it is why the Convergence Score I publish in each issue records evidence against the argument in the same place as evidence for it. It did not move this time, for exactly that reason.
Byproduct dependency is one dimension of the 100-catalyst framework I analyze in Silver Rising, alongside the five other Deep Dives in this issue of the Silver Catalyst newsletter. Get full Silver Catalyst Newsletter and Silver Rising book for today.
Peru's Antamina produced 62% less zinc last quarter, not because the orebody ran out but because the mine plan called for copper, and the silver in that ore left with it.
That is the central problem with silver supply, visible in one mine. Nobody at Antamina decided to produce less silver. They decided to feed the mill a different rock, and 73.9% of the world's mined silver comes out of decisions like that one. On August 26 the International Lead and Zinc Study Group published data that puts a global figure on the metals silver rides along with.
Most silver is mined by companies that are not looking for silverStart with where silver actually comes from, because the split is not what most silver marketing implies.
Sources: World Silver Survey 2026, Appendix 14, Metals Focus and the Silver Institute
The rows add to 846.7 Moz against a stated total of 846.6 Moz, and the percentages to 99.9%, both from rounding in the survey's own appendix.
Only 26.1% of the world's mined silver comes from mines that exist to produce silver. The rest arrives as a credit alongside something else, and the largest single source is lead and zinc mines at 249.1 Moz. When a zinc mine decides how much ore to process, it is also deciding, without thinking about it, how much silver reaches the market that year.
That is why the price signal breaks. A higher silver price is supposed to bring out more supply. It cannot do much when nearly three quarters of the metal is produced by operators whose budgets, mine plans and board decisions all turn on the price of something else.
From company filings to a global data seriesUntil late August, that argument rested on individual company filings: a seismic event at a Swedish mine, an ore-mix change at a Peruvian one, a closure in Australia. All of it real, none of it adding up to a measurement of the whole market.
Then the International Lead and Zinc Study Group published its first-half 2026 data. World zinc mine production fell 2.6%. World lead mine production fell 3.0%. The two metals that between them account for the largest single source of byproduct silver fell together in the same six months, with the declines concentrated in the biggest producers and only partly offset by increases elsewhere.
Two details give that more weight than a single half-year print usually deserves.
The first is that it reverses direction. The same monthly series had recorded 1.1% growth through May, so this is a turn rather than a continuation. EBC, reading the same data, puts the largest zinc reductions at Antamina in Peru, Garpenberg in Sweden and Red Dog in the United States, with Australia's Lady Loretta closing at the end of 2025 removing more tonnage.
The second is a price. Spot treatment charges for imported zinc concentrate in China reached a record low near minus $117.50 a dry tonne in August, on Shanghai Metals Market's index, against an $85 annual benchmark. A treatment charge is what a smelter earns for turning ore into metal. When it goes negative, the smelter is paying the miner for the right to process the ore, and its margin then depends on byproducts including silver rather than on the fee itself. That is what a genuine shortage of concentrate looks like when it shows up in a number rather than in commentary.
What that is worth in ounces, and what it is notHere is the arithmetic, with a caution attached that matters as much as the figures.
Sources: ILZSG August 2026 press release | World Silver Survey 2026, Metals Focus and the Silver Institute
The study group measures lead and zinc tonnage. It does not measure silver. The table above applies those percentage changes to last year's silver base, which makes it a scenario rather than a measurement, and the midpoint is a plain average of the two rather than a silver-weighted figure. Silver grades vary between mines, and they do not always move with tonnage.
Boliden's revised plan for Garpenberg shows why that caveat is needed. After a seismic event in March, 2026 guidance moved to 1.5 million tonnes milled at 100 grams of silver per tonne, from 3.7 million tonnes at 95 grams. Tonnage fell 59% while the silver grade guidance went up. The measured figure for 2026 arrives in next year's survey, not this one, and I will record it in the Silver Catalyst when it does, whichever way it goes.
What this means to Silver investorsOn the supply side this is good for silver, and it is worth being precise about which part is good.
The mechanism now has better evidence behind it. Two mine supply series falling together, in the ore types that carry the most byproduct silver, is the first time this argument has rested on a primary global statistical release rather than on a run of company disclosures. A record-low negative treatment charge is a market price saying the same thing.
The scale is smaller than the headline suggests. Roughly 7 Moz annualised at the midpoint is 0.83% of the 844.1 Moz of mine supply that Metals Focus and the Silver Institute forecast for 2026. It does not break the market this year, and it should not be presented as though it does.
What it does change is the shape of the problem. The market is running into a sixth consecutive year of structural deficit, forecast at 46.3 Moz for 2026 by Metals Focus and the Silver Institute. The ordinary way a shortage resolves is that a higher price pulls out more supply. This data shows why that route is partly closed: a higher silver price does not directly determine output at these lead and zinc operations, because none of the people running them is deciding anything based on it.
The honest counterweight is that Western inventories have not tightened. COMEX registered stock rose over the past month, London vaults built for a third consecutive month to 28,213 tonnes at the end of July, and the September futures contract reached first notice day without visible stress. Whatever is happening in the ore is not yet showing up in the metal that Western buyers can touch. That gap is the thing to watch, and it is why the Convergence Score I publish in each issue records evidence against the argument in the same place as evidence for it. It did not move this time, for exactly that reason.
Byproduct dependency is one dimension of the 100-catalyst framework I analyze in Silver Rising, alongside the five other Deep Dives in this issue of the Silver Catalyst newsletter. If you've at least considered investing in silver, I strongly encourage you to sign up, because it takes just $1 to get both. Get full Silver Catalyst Newsletter and Silver Rising book for $1 today.
Silver (XAG/USD) rebounds on Wednesday, trading around $64.30 at the time of writing, up 0.32% on the day after recovering from earlier losses. The precious metal finds some support from weaker-than-expected United States (US) employment data, although elevated US Treasury yields and expectations of tighter monetary policy continue to limit its upside.
The latest labor-market figures provide some relief for Silver. The Automatic Data Processing (ADP) Employment Change report shows that the US private sector added 38K jobs in August, below market expectations of 47K and the previous increase of 46K. The softer reading adds to signs of cooling labor demand and could complicate the case for additional monetary tightening.
However, expectations surrounding the Federal Reserve (Fed) remain broadly hawkish. Markets see a roughly 64% chance that the central bank will raise interest rates at its September 15-16 meeting, according to the CME FedWatch tool, compared with 36% a week earlier.
Higher rate expectations have pushed US Treasury yields sharply higher, creating a significant headwind for Silver as a non-yielding asset. The benchmark 10-year US Treasury yield reached 4.81% on Wednesday, its highest level since 2023, before easing modestly.
At the same time, rising tensions in the Middle East have driven Oil prices higher, adding another layer of uncertainty to the inflation outlook. Persistent energy-driven price pressures could encourage the Fed to maintain a restrictive stance for longer, potentially keeping Treasury yields elevated and limiting demand for precious metals.
The US Dollar (USD) also remains supported by the prospect of higher interest rates, although disappointing employment figures prevent the Greenback from gaining stronger momentum.
Against this backdrop, Silver's rebound remains caught between weakening US labor-market signals and persistent expectations of tighter Fed policy. Investors will now turn their attention to Friday's Nonfarm Payrolls (NFP) report, which could provide further clues on the strength of the US labor market and reshape expectations for the Fed's September decision.
XAG/USD technical analysis
In the one-hour chart, XAG/USD trades at $64.36, retaining a bearish near-term tone as it holds below the 100-hour simple moving average (SMA) at $66.81 and the 200-hour SMA at $67.80. This configuration suggests the recent bounce is a correction within a broader downswing, with the cluster of moving averages above price reinforcing the cap on recovery attempts. The Relative Strength Index (RSI) at 48.75 sits just below the neutral line, hinting at easing downside pressure but not yet signaling a decisive shift in momentum.
On the topside, immediate resistance emerges at $66.70, ahead of the horizontal barrier at $67.50, while the 100-hour SMA at $66.81 and the 200-hour SMA at $67.80 stack additional supply if bulls attempt a stronger rebound; a sustained move above these levels would be needed to alleviate the current bearish bias and expose the higher resistance at $71.12. On the downside, initial support is seen at $63.32, with further cushions at $62.19 and $60.87, where buyers would likely look to slow or halt any renewed decline.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver prices (XAG/USD) fell on Wednesday, according to FXStreet data. Silver trades at $63.87 per troy ounce, down 0.35% from the $64.09 it cost on Tuesday.
Silver prices have decreased by 10.15% 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 67.56 on Wednesday, broadly unchanged from 67.54 on Tuesday.
Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver price (XAG/USD) recovers its early losses and rebounds to near $64.00 till the early European session on Wednesday. The white metal is broadly under pressure as surging United States (US) Treasury yields due to hawkish Federal Reserve (Fed) bets are hurting non-yielding assets.
During the day, 10-year US Treasury Yields hit a record high at 4.81%, the highest level seen since November 2023.
According to the CME FedWatch tool, there is a 67% chance that the Fed will hike interest rates in the policy meeting this month.
Hawkish Fed bets accelerated after Fed Chair Kevin Warsh warned of upside inflation risks at the Jackson Hole Symposium.
Analysts at MUFG highlight that, while Fed Chair Warsh struck a hawkish tone in Jackson Hole on Friday, “the gist of his speech was similar to his previous speeches.” They note that he once again “talked tough on inflation” and underscored that if inflation does not decline at “sufficient speed” then the Fed still has “work to do,” reinforcing the perception that the policy bias remains tilted toward further tightening if disinflation stalls.
On Tuesday, Fed Governor Michael Barr highlighted the need to hike interest rates if price pressures don’t moderate soon. Barr also warned, “Inflation remains too high.”
Later in the day, investors will focus on the US ADP Employment Change data for August, which will be published at 12:15 GMT. According to estimates, the US private sector created 48K fresh jobs, slightly higher than 44K in July.
Silver Technical Analysis
In the daily chart, XAG/USD trades at $64.05. The pair holds below the 20-day Exponential Moving Average (EMA) at $65.33, keeping the near-term tone mildly bearish as the failed attempt to sustain above recent highs leaves price capped by this dynamic resistance. The Relative Strength Index (RSI) at 47.72 hovers just below the neutral 50 line, hinting at waning bullish momentum rather than an outright oversold condition.
On the topside, immediate resistance is located at the 20-day EMA around $65.33, and a daily close above this barrier would be needed to ease current downside pressure and open the way back toward the recent peak zone. Looking up, the Silver price could advance further to the August high at $71.12.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Silver FAQs Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
Silver price (XAG/USD) extends its losses for the second successive day, trading around $63.40 per troy ounce during the Asian hours on Wednesday. The non-yielding Silver declines as a global bond selloff drove the US 10-year Treasury yield up to 4.80%, hitting its highest point since early 2025. This surge in yields reignited market anxieties surrounding stubborn inflation and the possibility of further interest rate increases.
Compounding these inflationary concerns, crude oil prices spiked due to intensifying geopolitical friction between the United States and Iran, which threatens energy supplies out of the Middle East. According to TD Securities, the latest flare-up between the US and Iran is reinforcing the sense that the regional backdrop remains highly unstable. Strategists there argue that the renewed tensions “continue to highlight how flimsy any deal or MoU headlines really are,” underscoring the market’s sensitivity to further disruptions and helping to sustain a risk premium across the energy complex.
Meanwhile, recent economic data from the United States offered a mixed picture for investors. July JOLTS job openings fell short of expectations, landing at 7.27 million. At the same time, the ISM Manufacturing PMI dipped to 54.6 in August from 55.6 in the previous month. While the PMI missed estimates, it stayed comfortably in expansion territory, indicating ongoing strength in the manufacturing domain. Market focus is now shifting to the upcoming ADP employment report and Friday's nonfarm payrolls for clearer signals on the Federal Reserve's rate strategy.
Fed’s Barr keeps hawkish bias as inflation risks keep rate hike option alive Fed’s Barr delivered a slightly more hawkish-than-usual message, with the FXS Speechtracker score at 7/10 versus a 6.8/10 historical average, underscoring concern that inflation “remains too high” despite a stable labor market and “solid” AI-driven growth. The conditional guidance — favoring steady rates only if there is confidence inflation is moderating, but explicitly flagging a potential rate hike if it does not — reinforces an asymmetric reaction function tilted toward tightening. Overall, the tone signals a low tolerance for renewed price pressures and keeps upside risks for the Dollar intact.
The FXS Fed Sentiment Index slipped by 0.42 points to 128.86, indicating a modest pullback in perceived hawkishness even as the index remains firmly above the neutral 100 mark. This configuration suggests that, while the immediate speech tone was only marginally above the established baseline in the FXS Speechtracker, the broader policy backdrop stays clearly hawkish, with the FXS Fed Sentiment Index still signaling a bias that supports the Dollar against lower-yielding currencies.
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.
