Silver Price Forecast: XAG/USD consolidates above $58.00; bullish potential seem intact
Silver (XAG/USD) lacks a firm intraday directional bias on Monday and seesaws between tepid gains/minor losses through the Asian session.
  • Silver is seen oscillating in a narrow trading band at the start of a new week.
  • The recent range-bound price action could be seen as a bullish consolidation.
  • A break below the $56.40 confluence is needed to negate the positive bias.

Silver (XAG/USD) lacks a firm intraday directional bias on Monday and seesaws between tepid gains/minor losses through the Asian session. The white metal currently trades around the $58.20 region, down over 0.30% for the day, though the technical setup seems tilted firmly in favor of bullish traders.

The XAG/USD has been oscillating in a broader trading range since the beginning of this month. Against the backdrop of the recent rally to the all-time peak, this might still be categorized as a bullish consolidation phase and validates the positive outlook for the white metal, though mixed oscillators warrant some caution.

The XAG/USD remains above the rising 200-hour Exponential Moving Average at $56.30, keeping the broader bias supported. The Moving Average Convergence Divergence (MACD) turned negative, slipping below the zero line as downside momentum builds. RSI at 50.82 is neutral, signaling a cooling of bullish momentum.

The 200-hour EMA continues to slope higher, suggesting the underlying trend would stay supported while the price holds above it. Holding above $56.20 would keep dips contained, while a close back above the daily high at the $59.00 mark could improve the tone and lift the XAG/USD back to the $59.35 region, or the all-time peak.

On the flip side, the daily low, around the $57.50 area, could offer immediate support. A convincing break below could drag the XAG/USD to the $57.00 mark en route to the trading range support, around the $56.45 area. This is followed by the 200-hour EMA, which, if broken, might shift the near-term bias in favor of bearish traders.

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

Silver 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.

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이름 / 기호
차트
% 변동 / 가격
XBRUSD
1일 변동
+0%
0
XTIUSD
1일 변동
+0%
0
XAUUSD
1일 변동
+0%
0

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