Silver Price Analysis: Advances but stalls at technical confluence near $75
Silver price edges up over 0.50% during Friday’s session, after bouncing off a daily low of $73.10. Speculation about a resumption of negotiations between Washington and Tehran is cheered by investors, which pushed US equities higher in tandem with the precious metals segment.
  • Silver trades near 20- and 100-day SMA confluence around $75.60.
  • RSI remains bearish, suggesting downside risks despite recent rebound.
  • Break below $75 exposes $72.61 and $69.82 support levels.

Silver price edges up over 0.50% during Friday’s session, after bouncing off a daily low of $73.10. Speculation about a resumption of negotiations between Washington and Tehran is cheered by investors, which pushed US equities higher in tandem with the precious metals segment. At the time of writing, the XAG/USD trades at $75.83,

XAG/USD Price Analysis: Technical outlook

Technically, Silver is poised to consolidate within the 20- and 100-day Simple Moving Averages (SMAs), both at $75.64. Worth noting that since bottoming at around $61.02 on March 23, the white metal continued to record higher lows, an indication that the uptrend might continue.

However, the latest uptrend impulse peaked at around $83.05, with sellers outweighing buyers, pushing prices towards $75.00.

From a momentum standpoint, further losses are expected as the Relative Strength Index (RSI) is bearish.

For a bearish continuation, sellers must clear the $75.00 mark, followed by the April 13 daily low of $72.61. On further weakness, the next stop would be the April 7 daily log of $69.82.

On the flip side, buyers must reclaim the 100-day SMA, immediately followed by the 50-day SMA at $78.57. Above this confluence, the next resistance is the $80.00 psychological figure.

XAG/USD Price Analysis: Technical outlook

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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