Silver Price Forecasts: XAG/USD reaches $59.00 amid hopes of new US-Iran negotiations
- XAG/USD hits one-week highs above $59.00 as hopes of a ceasefire in Iran weigh on the safe-haven USD.
- Axios reported that Trumop¡s administration is reviewing a peace proposal submitted by mediators.
- Before that, the US and Iran exchanged fire for the 10th consecutive day, and the Houthis announced a "maritime embargo" against Saudi Arabia.
Silver (XAG/USD) is rallying, favoured by a mild US Dollar weakness on Tuesday. The precious metal is testing one-week highs at the $59.70 area at the time of writing as investors hope that mediators’ efforts to achieve a new ceasefire between the US and Iran are offsetting fears that the conflict might escalate out of control.
US attacked Iran for the 1th day in a row, and Iran responded by targeting US assets in Gulf Countries. The key Strait of Hormuz remains closed, and the Iran-backed Houthis have announced the closure of the Bab el-Mandeb Strait to Saudi Arabian vessels, which might further strangle Oil supply.
Markets, however, are keeping the faith that efforts to cease hostilities will succeed, which explains the mild reversal on the US Dollar Index (DXY). Axios reported earlier on Tuesday that the Trump administration is exploring the peace proposal and that it has urged Israel to avoid steps that might close the diplomatic window.
Technical Analysis: Bulls breached the descending trendline
XAG/USD trades at $58.97, after breaking the descending trendline resistance from late May, early June highs, with momentum indicators supporting the bullish view. The 4-Hour Relative Strength Index (14) is getting close but not yet at overbought levels, while the Moving Average Convergence Divergence (MACD) indicator extends gains in positive territory, hinting that buyers remain in control while price presses into nearby overhead levels.
Bulls seem to have met some resistance in the middle range of the $59.00s, which capped rallies on July 14 and 15. Further up, a support-turned-resistance at $63.10 and a similar area just ahead of the $67.00 level are the next targets.
On the downside, the broken trendline, now at $56.45, and the year-to-date low, a few cents below $55.00, are likely to challenge bears. If these levels are broken, sellers might feel attracted by the late October 2025 low, at $48.64.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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.
Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
