Silver Price Forecasts: XAG/USD remains bid above $62.00
Silver (XAG/USD) sits comfortably above the $62.00 level on Thursday’s European trading session, with the all-time high of $62.89 at a short distance.
  • Silver remains firm, trading near all-time highs, at $62.89.
  • A dovish Fed and renewed concerns about an AI bubble are underpinning support for precious metals.
  • XAG/USD is showing a bearish divergence in the 4-hour RSI.

Silver (XAG/USD) sits comfortably above the $62.00 level on Thursday’s European trading session, with the all-time high of $62.89 at a short distance. A dovish message from the US Federal Reserve and cautious market sentiment amid renewed concerns about an AI bubble are keeping precious metals supported on Thursday.

The US Dollar remains on its back foot, as investors digest a more dovish-than-expected Fed monetary policy decision on Wednesday. The central bank cut interest rates by 25 basis points as expected, but votes to hold rates were only two, and Fed Chairman Jerome Powell discarded any rate hike. This has kept investors' hopes of at least two more rate cuts in 2026 alive

Technical Analysis: Bulls aim for $62.85 and the 64.00 area

XAG/USD 4-Hour Chart
XAG/USD 4-Hour Chart


The pair looks overstretched after rallying more than 25% in the last three weeks, but so far without a sign of a trend change. The 4-hour Relative Strength Index (RSI), however, is showing a bearish divergence, which should act as a warning for buyers.

Immediate resistance is at Wednesday’s high, near $62.90. Further up, the 261.8% Fibonacci extension of the early December trading channel is at $63.85. An unlikely move above that level would bring the $65.00 psychological level into focus.

To the downside, the pair has found support on a previous resistance area at $61.50 (December 11 low). Below here, the next targets are the December 10 low at $60.00 and the December 5 high at $59.35.

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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