Silver Price Forecasts: XAG/USD holds above $74.50 with bears gaining momentum
Silver (XAG/USD) shows marginal losses on Monday, trading near $77.00 at the time of writing, with last week’s lows of $74.50 at short distance.
  • Silver treads water around $75.00, unable to take advantage from US Dollar's weakness.
  • Precious metals are looking for direction in a calm start to the week.
  • XAG/USD remains bearish with bulls capped below the $80.00 psychological level.

Silver (XAG/USD) shows marginal losses on Monday, trading near $77.00 at the time of writing, with last week’s lows of $74.50 at short distance. The White metal has been trading choppy over the last few weeks, with the bearish trend from the late January highs still in play.

Precious metals remain unable to draw support from the US Dollar’s weakness, and maintain a moderately negative bias, with trading volumes subdued on Monday, as most Asian markets were closed for the Lunar New Year holidays. The US market will also be closed for the President’s Day holiday.

Chart Analysis XAG/USD

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Technical Analysis

XAG/USD trades at $77.09, below the downward-trending 50-period Simple Moving Average (SMA) in the 4-hour chart, which highlights the near-term bearish trend. The Moving Average Convergence Divergence (MACD) histogram remains negative, and the Relative Strength Index (RSI) prints 43, a level consistent with a neutral-to-bearish tone.

Immediate support is seen at last week's lows near $74.40, ahead of the February 6 low near $64.00. Immediate resistance is at the mentioned SMA, now around $80.00. Further up, the top of last week's trading range, near $86.30, will challenge bulls ahead of February 4 highs above $92.00.

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

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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