Silver Price Forecast: XAG/USD targets nine-day EMA support below $72.00
Silver price (XAG/USD) has pared its nearly a 4.5% gain registered in the previous session, trading around $72.20 during the European hours on Wednesday. However, Silver prices are on track for an annual gain of over 150% in 2025, marking the metal’s strongest yearly performance.
  • Silver price falls toward the nine-day EMA of $71.54.
  • The 14-day Relative Strength Index stands at 63.53, confirming positive momentum.
  • The primary resistance lies at the upper ascending channel boundary around $80.00.

Silver price (XAG/USD) has pared its nearly a 4.5% gain registered in the previous session, trading around $72.20 during the European hours on Wednesday. However, Silver prices are on track for an annual gain of over 150% in 2025, marking the metal’s strongest yearly performance.

The technical analysis of the daily chart timeframe suggests the price of the precious metal remains within an ascending channel pattern, suggesting a persistent bullish bias. The 14-day Relative Strength Index (RSI) prints 63.53, reinforcing positive momentum after cooling from extreme readings.

Silver price holds above the rising nine-day Exponential Moving Average (EMA) and well above the 50-day EMA, preserving a bullish bias. The short-term average stands firmly above the medium-term gauge, and the spread has widened, underscoring trend strength.

Holding above the short-term average would keep the topside in focus and could open a path toward resistance at the upper boundary of the ascending channel around $80.00. A break above the channel would help the Silver price to approach the record high of $85.87, which was recorded on December 29.

On the downside, the Silver price could test the immediate support at the nine-day EMA of $71.54, followed by the lower ascending channel boundary around $70.00. A daily close below the channel would open a correction toward the 50-day EMA at $59.32.

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.

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

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