Silver Price Forecast: XAG/USD holds gains above $68.50 despite ongoing bearish bias

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XAG/USD extends its gains for the second consecutive day, trading around $68.60 per troy ounce during the European hours on Tuesday. Silver is retaining a bearish near-term bias as it holds below both the nine-day and 50-day Exponential Moving Averages (EMAs).

Silver price may navigate the region around nearly a six-month low of $61.01.
The 14-day Relative Strength Index near 36 indicates that downside pressure still dominates.
The initial barrier appears at the nine-day EMA of $71.63.

The 14-day Relative Strength Index (RSI) near 36 points to subdued momentum and suggests that downside pressure still dominates, even if conditions are not yet deeply oversold.

The XAG/USD pair is maintaining a bearish near-term bias as spot holds beneath both the nine-day and 50-day Exponential Moving Averages (EMAs). The alignment of price below these short- and medium-term EMAs suggests rallies are likely to be sold, while a soft 14-day Relative Strength Index (RSI) reading around 43 hints at waning upside momentum rather than outright oversold conditions.

Silver price may fall toward a nearly six-month low at $61.01, while on the upside, the primary barrier lies at the nine-day EMA of $71.63, followed by the 50-day EMA at $75.91. Further advances above these moving averages would cause the bullish emergence and support the XAG/USD pair to approach the three-month high of $90.03, followed by the four-month high of $96.62, reached on March 2.

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

Silver FAQs

Why do people invest in Silver?

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.

Which factors influence Silver prices?

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.

How does industrial demand affect Silver 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.

How do Silver prices react to Gold’s moves?

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.