Silver Price Analysis: XAG/USD advances above $66.00, but below key resistance in broader downtrend

인기 기사

Silver (XAG/USD) rises to around $66.35 during the early European trading hours on Monday. The precious metal attracts some buyers amid progress of US-Iran peace deal, easing tension in the Middle East.

Silver advances to near $66.35 in Monday’s early European session.
The negative outlook prevails under the 100-day SMA, with bearish RSI momentum.
The first upside barrier emerges at $70.18; the initial support level to watch is $61.80.

Mediators Qatar and Pakistan said on Monday that the first round of negotiations between the US and Iran to reach a final deal to end the war has ended with "encouraging progress,” per BBC. The negotiation began on Sunday in Switzerland, after last week's initial agreement between the US and Iran. Technical talks will continue throughout the week.

Technical Analysis:

In the daily chart, XAG/USD remains under pressure, sitting well below the 20-period Bollinger simple moving average and the 100-day moving average (MA), which together suggest a capped market within a broader corrective phase. The Relative Strength Index (14) hovering just above 40 hints at subdued downside momentum rather than outright capitulation, but the price structure favors sellers while spot holds beneath these layered resistances.

On the topside, initial resistance emerges at the Bollinger middle band around $70.18, a recovery above which would ease immediate bearish pressure and open the way toward the June 17 high of $71.56. The next hurdle to watch is the 100-day MA at roughly $76.90. A further extension could test the upper Bollinger band near $78.55. On the downside, the lower Bollinger band around $61.80 offers the next meaningful support, and a break below this floor would expose the June 11 low of $61.50.

(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.

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