- Silver price jumps over 2%, trading at $28.99 after bouncing from daily lows of $28.25.
- XAG/USD clears the 100-DMA at $28.58; key resistance at $29.00 in focus.
- RSI indicates strengthening bullish momentum; next targets include $29.44 and $30.00, with support at $27.31 if bearish reversal occurs.
Silver price resumed its uptrend and surged over 2% on Wednesday, clearing the 100-day moving average (DMA) at $28.58, a key resistance level that capped the grey’s metal advance toward $29.00. The XAG/USD trades at $28.99 after bouncing off daily lows of $28.25.
XAG/USD Price Analysis: Technical outlook
The grey metal uptrend remains in play, though buyers' lack of strength to achieve a daily close above $29.00 could expose the precious metal to selling pressure.
Buyers gathered some steam as shown by the Relative Strength Index (RSI), which, despite being below the neutral line, the steepest advance, hints that it would turn bullish and confirm price action.
If XAG/USD reclaims $29.00, the next stop would be the July 24 peak of $29.44, followed by the 50-day moving average (DMA) at $29.89. Further gains are seen once Silver tops $30.00. Conversely, if XAG/USD slumps below the 100-DMA at $28.58, the next support would be the July 29 bottom of $27.31, followed by the $27.00 figure.
XAG/USD Price Action – 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD extends the range play amid mixed cues
The AUD/USD pair looks to build on the overnight bounce from a three-month low amid the post-FOMC US Dollar downfall and the upbeat market mood. Meanwhile, the mixed Australian consumer inflation figures released on Wednesday dashed hopes for further interest rate hikes by the RBA.
EUR/USD cycles familiar levels as NFP jobs dump looms ahead
EUR/USD churned near key technical levels on Wednesday after the Federal Reserve held rates steady for one last meeting as markets had broadly anticipated. The slow race to September’s Fed rate call kicks off on Friday with the latest print of US Nonfarm Payrolls for July.
Gold rises to daily highs as Powell unveils a probable rate cut
The precious metal maintains its bullish bias, and climbs to fresh tops past $2,430 per ounce troy after a September rate cut remains on the table.
Why investors need to be careful about celebrity meme coins after SWEENEY token scam
In a now-viral analysis on July 30, on-chain investigator ZachXBT drew attention to a recent celebrity meme coin scam involving the recent hacking of actress Sydney Sweeney's X account and the launch of the SWEENEY token.
What could happen next with the Japanese Yen after BoJ´s hike? Premium
So, the Bank of Japan finally woke up and surprised financial markets by raising its benchmark interest rate by 15 basis points to 0.15%- 0.25%. "Surprise" may be a bit too much, as several Japanese media anticipated the decision a few hours before it took place.