Silver Price Forecasts: XAG/USD edges up, nearing $58 as the US Dollar takes a breather

熱門文章

Silver (XAG/USD) has bounced up from seven-month lows below $56.00 on Friday, to reach session highs at $57.80 at the moment of writing.

XAG/USD approaches the $58.00 area after bouncing up from seven-month lows at $55.60.
The precious metal is on track for a 10% weekly decline amid rising Fed tightening bets.
Technically, the current rebound is a corrective reaction from oversold levels.

Silver (XAG/USD) has bounced up from seven-month lows below $56.00 on Friday, to reach session highs at $57.80 at the moment of writing. The precious metal is trimming some losses, favoured by a mild US Dollar (USD) pullback, but remains on track for a 10% weekly decline, hammered by broad USD strength.

Recent US macroeconomic figures highlight a resilient economy and an improving labour market, while the AI boom is funnelling massive investment flows into the country. This has revived the theory of US economic exceptionalism and is boosting the Greenback against its main peers.

US inflation, on the other hand, remains out of control, despite the recent decline in oil prices. Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s inflation gauge of choice, accelerated to a 4.1% year-on-year growth in May, its highest level in more than three years, endorsing the central bank’s hawkish stance. In this context, investors' repricing of interest rate hikes in the coming months is fuelling the US Dollar’s rally and crushing precious metals.

Technical Analysis: A dead cat's bounce for Silver

XAG/USD trades at $57.91, after reaching heavily oversold levels with the bearish near-term bias intact, as the Relative Strength Index (14) remains below 40, on the weak side. At the same time, the Moving Average Convergence Divergence (MACD) ticks modestly into positive territory, hinting at only a tentative attempt to stabilize rather than a clear bullish reversal.

Bears are being contained above $55.60 so far, although upside attempts remain limited. Further down, the October and mid-November 2025 lows, in the area between $54.85 and $54.40, might provide some support ahead of the $50.00 psychological level.

On the topside, initial resistance is seen at the $59.00 area (Thursday's high), followed by the June 11 low, at $61.50, and the weekly high, in the $67.15 area.

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

Silver FAQs

Why do people invest in Silver?

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Which factors influence Silver prices?

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.

How does industrial demand affect Silver prices?

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.

How do Silver prices react to Gold’s moves?

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.