- Silver retreats 0.32% after hitting $33.92, pressured by US Dollar rebound despite recent bullish momentum.
- RSI suggests bulls may attempt another push above $34.00 toward key resistance at $34.86.
- Breakdown below $33.00 exposes support at $32.66, followed by 50-day SMA near $32.04.
Silver price retreats by 0.32% after reaching a four-day high of $33.92. At the time of writing, XAG/USD trades at $33.60, undermined by the strength of the US Dollar, which has registered solid gains.
XAG/USD Price Forecast: Technical outlook
After registering a solid rally on Tuesday, Silver failed to break the $34.00 mark, which opened the door for sellers, capping the grey metal’s advance to challenging yearly peaks, near $34.23.
Momentum favors XAG/USD upside as depicted by the Relative Strength Index (RSI), which, is about to surpass the previous peak. Therefore, short-term further upside is seen.
XAG/USD first resistance would be the March 26 high at $33.92. Once cleared the next stop would be the $34.00 figure, followed by last October’s monthly peak at $34.86.
Conversely, if XAG/USD slips beneath $33.00, immediate support emerges at the March 21 low of $32.66. Once hurdled, the next stop is the 50-day Simple Moving Average (SMA) at $32.04.
XAG/USD Price Chart – Daily
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
EUR/USD holds above 1.0800 after German inflation data
EUR/USD struggles to gain traction and trades in a narrow channel above 1.0800 on Monday as the risk-averse market environment helps the US Dollar stay resilient against its rivals. Meanwhile, the data from Germany showed that the annual CPI inflation declined to 2.2% in March, as expected.
Gold sits at record highs above $3,100 amid tariff woes
Gold price holds its record-setting rally toward $3,150 in the second half of the day on Monday. The bullion continues to capitalize on safe-haven flows amid intensifying global tariff war fears. US economic concerns weigh on US Treasury bond yields, allowing XAU/USD to push higher.
GBP/USD stays in range near 1.2950 as mood sours
GBP/USD fluctuates in a narrow channel at around 1.2950 at the beginning of the new week. Growing concerns over US President Donald Trump's tariffs igniting inflation and dampen economic growth weigh on risk mood and don't allow the pair to gain traction.
Seven Fundamentals for the Week: “Liberation Day” tariffs and Nonfarm Payrolls to rock markets Premium
United States President Donald Trump is set to announce tariffs in the middle of the week; but reports, rumors, and counter-measures will likely dominate the headline. It is also a busy week on the economic data front, with a full buildup to the Nonfarm Payrolls (NFP) data for March.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.