Silver Price Forecast: XAG/USD bounces off 100-hour SMA pivotal support; climbs to $66.00
Silver (XAG/USD) attracts some dip-buying near mid-$64.00s during the Asian session on Friday and stalls the previous day's modest retracement slide.
  • Silver regains positive traction following the previous day’s pullback and a negative close.
  • The setup remains tilted in favor of bulls, though overbought daily RSI warrants caution.
  • Any corrective slide could be seen as a buying opportunity near the 100-hour SMA support.

Silver (XAG/USD) attracts some dip-buying near mid-$64.00s during the Asian session on Friday and stalls the previous day's modest retracement slide. The white metal climb back closer to the $66.00 round figure in the last hour and remain well within the striking distance of the all-time peak touched on Wednesday.

The XAG/USD once again finds decent support near the upward-sloping 100-hour Simple Moving Average (SMA), keeping buyers in control. It offers dynamic support at $64.75, and holding above this rising average would preserve the bullish tone. The Moving Average Convergence Divergence (MACD) histogram has turned positive and is expanding, suggesting the MACD line has crossed above the Signal line near the zero level. Momentum improves, and a sustained push further into positive territory would bolster the upside bias.

The Relative Strength Index (RSI) stands at 56, neutral-to-bullish and below overbought, supporting scope for further gains if buyers maintain control. However, the daily RSI is flashing overstretched conditions, which makes it prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move. This, in turn, suggests that the XAG/USD could face some intermediate hurdle near the $66.50-$66.55 region.

This is followed by the record high, around the $67.00 neighborhood, which should cap the upside for the XAG/USD. A sustained strength beyond the said handle, however, will be seen as a fresh trigger for bullish traders and reaffirm the near-term positive outlook.

On the flip side, the $65.40-$65.35 region now seems to protect the immediate downside ahead of the $65.00 psychological mark. This is closely followed by the 100-hour SMA pivotal support, around the $64.75 region, which, if broken decisively, might prompt some technical selling and pave the way for a deeper corrective decline. The XAG/USD might then accelerate the downfall towards testing sub-$64.00 levels before eventually dropping to the $63.35 intermediate support en route to the $63.00 mark.

(A part of the technical analysis of this story was written with the help of an AI tool)

XAG/USD 1-hour chart

Chart Analysis XAG/USD


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.

Acuity Trading è una fintech con sede a Londra, fondata nel 2013, specializzata in dati alternativi basati su AI e analisi del sentiment per il trading e gli investimenti. Ha rivoluzionato l’esperienza di trading online con strumenti visivi di notizie e sentiment e continua a guidare il mercato con dati alternativi che generano alfa e strumenti di trading altamente coinvolgenti sfruttando le più recenti ricerche e tecnologie AI.
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