- Silver retreats to $33.78 from $34.09 high after Fed holds rates, citing economic uncertainty.
- Bearish patterns, including 'quasi-shooting star' and 'hanging man,' suggest potential further declines.
- Key support at $33.39; a break below could expose $33.00. Resistance at $34.51 and $35.00 if bulls rally.
Silver price finished the day with a loss of over 0.55% on Wednesday after the Federal Reserve (Fed) held rates unchanged while acknowledging that the economic outlook is uncertain due to United States (US) trade policies implemented by President Donald Trump. At the time of writing, XAG/USD trades at $33.78 after hitting a daily high of $34.09.
XAG/USD Price Forecast: Technical outlook
Price action during the last couple of days opened the door for further downside on Silver prices. A ‘quasi-shooting star’ followed by a ‘hanging man’ indicates that sellers are driving XAG/USD beneath the $34.00 figure. This could sponsor a retracement if the grey metal drops below the February 14 daily peak of $33.39. A breach of the latter will expose the $33.00 figure.
If XAG/USD rises past $34.00, the following key resistance would be October 30, 2024, peaking at $34.51, followed by the $35.00 mark.
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
AUD/USD stays defensive near 0.6300; eyes a weekly decline
AUD/USD stays on the back foot near the 0.6300 mark early Friday, on track to end in the red for the first time in three weeks. Uncertainty over Trump’s tariffs, a weaker risk tone-led renewed US Dollar demand and disappointing Aussie jobs data act as headwinds for the pair.
USD/JPY re-attempts 149.00 after Japanese inflation data
USD/JPY edges higher and battles 149.00 following the release of Japan's National Core CPI, though it lacks bullish conviction amid the divergent BoJ-Fed policy expectations. Moreover, trade jitters and geopolitical risks induced cautious sentiment keep the safe-haven Japanese Yen afloat, restricting the pair.
Gold traders look to cash in but bullish potential remains intact
Gold price is looking to extend its previous retreat from all-time highs of $3,058 in Asian trading on Friday. Despite the pullback, Gold price remains on track to book the third consecutive weekly gain.
XRP declines despite 400% growth in network activity
Ripple's XRP trades near $2.43 on Thursday after seeing a rejection at the $2.60 resistance. The remittance-based token has seen a 400% growth in network activity since the beginning of March.
Tariff wars are stories that usually end badly
In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.
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.