Silver Price Forecast: Silver rebounds as US yields fall, bulls eye yearly highs
Silver (XAG/USD) rallies sharply during the North American session, edged up more than 2.50% after bouncing off daily lows of $49.73 and trades at $51.37 at the time of writing.
  • Silver rebounds toward $51.37 as falling US Treasury yields fuel strong upside momentum.
  • Bulls target $52.46 and yearly high at $54.46, with RSI firmly supporting further gains.
  • Drop below $51.00 risks slide toward $50.00 support and 20-day SMA near $49.67.

Silver (XAG/USD) rallies sharply during the North American session, edged up more than 2.50% after bouncing off daily lows of $49.73 and trades at $51.37 at the time of writing. Expectations that the Federal Reserve might ease policy in December push US Treasury yields lower, a tailwind for the non-yielding metal.

XAG/USD Price Forecast: Technical outlook

Silver’s uptrend in the short-term resumed, but traders need to clear key resistance at $52.46, November 13 high. A breach of the latter will expose the yearly high of 54.46 reached in mid-October, ahead of the $55.00 milestone.

Momentum as measured by the Relative Strength Index (RSI) is bullish, hence the path of least resistance is upwards.

Conversely, if XAG/USD tumbles below $51.00, look for a drop towards $50.00. Once cleared, the 20-day SMA is up next at $49.67, followed by the 50-day SMA at $48.45

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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