Silver Price Forecasts: XAG/USD picks up above $59.00 as US Dollar softens

熱門文章

Silver (XAG/USD) is trimming losses on Thursday, and hitting session highs just above $59.00 after bouncing from $57.22 lows on Wednesday.

XAG/USD picks up above $59.00 with a bearish bias in play.
US Dollar's pullback following the release of the Fed's minutes has given some oxygen to precious metals.
Silver is trading halfway through the last two weeks' trading range.

Silver (XAG/USD) is trimming losses on Thursday, and hitting session highs just above $59.00 after bouncing from $57.22 lows on Wednesday. US Dollar’s pullback has given some oxygen to the battered precious metals, although Silver’s broader trend remains bearish, after having lost more than $3 so far this week.

The White metal is drawing some support from a weaker US Dollar following the release of the Federal Reserve’s (Fed) minutes. The central bank maintained its commitment to fight inflationary pressures, but a split market committee has left investors pondering the timing of the next interest rate hikes.

Furthermore, Iran and the US have exchanged attacks for the second consecutive day, but comments from US President Donald Trump affirming that Iran “wants to make a deal so badly” suggest that Washington and Tehran will return to the negotiating table.

Technical Analysis: Key resistance is at the $62.50 area

XAG/USD trades at $59.13, retaining a bearish near-term bias as it holds halfway through the last two weeks' range, following a nearly 35% sell-off in less than two months. The four-hour Relative Strength Index (14) at 45.32 sits in neutral territory, while the Moving Average Convergence Divergence (MACD) remains negative, hinting that downside momentum is still in play.

On the downside, initial support is seen at the June 24 and 26 lows, at the $55.60-$55.70 area. Further down, the 127.2% Fibonacci retracement of the late June drop, at $51.40, and the late November 2025 lows at $48.64 emerge as the next targets.

On the topside, bulls would need to reclaim Wednesday's highs at $61.00 and the July 6 high in the $62.50 area to ease immediate pressure. In that case, the mid-June highs near $71.75 will come into focus.

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

Silver FAQs

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.