Silver Price Forecast: Bullish and poised to end above $81
Silver price surges over 4% on Friday, reclaims $81.00 a troy ounce as the Greenback gets battered on positive news around the Middle East conflict.
  • Silver rallies above $81, posting fourth straight week of gains.
  • RSI breakout confirms strengthening bullish momentum and upside potential.
  • Break above $83.05 exposes $85.44 and $90.00 resistance levels.

Silver price surges over 4% on Friday, reclaims $81.00 a troy ounce as the Greenback gets battered on positive news around the Middle East conflict. The reopening of the Strait of Hormuz and a second round of talks between the US and Iran pushed precious metals higher, and the white metal is no exception. The XAG/USD trades at $81.82.

XAG/USD Price Forecast: Technical Outlook

The white metal advanced steadily on Friday, rallying for the fourth straight week and reaching a five-week high at $83.05 before retreating to $81.00. Price action seems constructive, and if Silver closes the day above the latter, it opens the door to challenging $90.00 in the short term.

Momentum turned bullish as the Relative Strength Index (RSI) cleared a previous peak, hinting that bulls are gathering some steam. Hence, in the short term, Silver’s could aim higher.

The next key resistance would be the March 13 high at $85.44, followed by the March 12 high at $87.43, followed by the March 11 peak at $89.42. Up next lies the $90.00 milestone.

Downwards, if XAG/USD tumbles below a key support trendline at around $77.65-$77.85, expect further losses. The next support would be the 100-day SMA at $77.24, followed by the 20-day SMA at $73.77.

XAG/USD Price Chart – Daily

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.

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LIVE-KURSE

Name / Symbol
Diagramm
% Änderung / Preis
XAUUSD
1 T Änderung
+0%
0
XAGUSD
1 T Änderung
+0%
0
XPTUSD
1 T Änderung
+0%
0

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