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Quotes and rates for precious metals Silver vs US Dollar (XAGUSD)

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  • 22.07.2024 04:11
    Silver Price Forecast: XAG/USD depreciates to near $29.00 due to China’s demand concerns
    • Silver price depreciates as the slowing Chinese economy could negatively impact the industrial demand for the asset.
    • The grey metal may limit its downside as challenges in mining production could lead to tighter supplies.
    • The rising odds of the Fed reducing rates could support the demand for non-yielding assets like Silver.

    Silver price (XAG/USD) continues its losing streak for the fourth consecutive day, trading around $29.20 per troy ounce during the Asian hours on Monday. The grey metal faces challenges due to a slowing Chinese economy, the world's largest manufacturing hub. China's industrial demand for Silver is significant, as it is essential in various applications such as electronics, solar panels, and automotive components.

    However, Silver could limit its downside as supply could fail to keep pace. “Mining production has been affected by labor shortages and environmental regulations, leading to tighter supplies. According to the Silver Institute’s estimates, 2024 is expected to be the fourth consecutive year of a supply deficit, Business Standard cited Navneet Damani, group senior vice-president, head of commodities research, Motilal Oswal Financial Services.

    Additionally, Silver prices may also find support as the dovish sentiment surrounding the Federal Reserve's policy stance could support the demand of the non-yielding asset. Lower interest rates could attract buyers toward assets like Silver. According to CME Group’s FedWatch Tool, the markets show a 91.7% probability of a 25-basis point rate cut at the September Fed meeting, up from 90.3% a week earlier.

    Federal Reserve Bank of New York President John Williams stated on Friday that the long-term trends that caused declines in neutral interest rates before the pandemic continue to prevail. Williams noted, "My own Holston-Laubach-Williams estimates for r-star in the United States, Canada, and the Euro area are about the same level as they were before the pandemic," according to Bloomberg.

    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.

  • 19.07.2024 19:36
    Silver Price Analysis: XAG/USD plummets more than 2% and drops below $29.50
    • Silver edges down 2.05%, continues three-day decline amid profit-taking.
    • Technicals suggest more selling as RSI drops below 50.
    • Key supports: $29.00, June 26 low of $28.57, 100-DMA at $28.23.
    • For bullish turn, XAG/USD must surpass $29.50, with resistance at $30.17 and $31.00.

    Silver price extended its losses to three straight days, late in the North American session, plummeting more than 5% weekly due to investors booking profits, according to Jim Wyckoff of Kitco. The grey metal witnessed its meteoric rise of eleven days, ending as the XAG/USD trades beneath the $29.20 mark, losing 2.05%.

    XAG/USD Price Analysis: Technical outlook

    Although XAG/USD maintains a bullish bias, buyers might find it difficult to gain traction. The Relative Strength Index (RSI) vertical drop that pierced the 50-neutral line depicts that momentum indicates that further selling pressure lies ahead.

    On further weakness, the XAG/USD first support would be the $29.00 psychological figure. Once cleared, the next support would be the June 26 low at $28.57, followed by the 100-DMA at $28.23.

    For a bullish continuation, the XAG/USD must climb above $29.50 so buyers can test the $30.00 mark. On further strength, Silver’s next resistance would be the 50-DMA at $30.17 before challenging the $31.00 mark.

    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.

     

  • 19.07.2024 12:58
    Silver Price Forecast: XAG/USD nosedives to near $29 as China offers sluggish fiscal boost
    • Silver price plummets to near $29.00 on absence of big boost economic measures from China.
    • Higher US Dollar due to expectations of Trump’s victory in US presidential elections has weighed on the Silver price.
    • Silver price plunges after a decisive break below advancing trendline.

    Silver price (XAG/USD) plummeted to near $29.00 in Friday’s American session. The white metal faces an intense sell-off as the outcome of China’s third plenum meeting had less stimulus measures to address economic challenges and was more focusing more on “high-quality development”.

    World’s second-largest economy struggles to maintain the economic growth momentum due to poor demand from domestic and the overseas market. Therefore, investors were expecting big bold fiscal measures China’s Communist Party to uplift growth prospects.

    Absence of strong fiscal measures to boost industrial output has weighed on the Silver price. The application of Silver, as a metal, has application in various sectors such as Electric Vehicles, medical appliances and consumer durables.

    Meanwhile, a sharp recovery in the US Dollar (USD) due to growing speculation for Donald Trump’s victory in upcoming United States (US) presidential elections has also weighed on the Silver price. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, advances to near 104.30 after recovering from an almost four-month low of 103.65. Improved appeal of the US Dollar makes the Silver price an expensive bet for investors.

    However, the Federal Reserve (Fed) is widely anticipated to start reducing interest rates from the September meeting. The expectations rose by cooling inflationary pressures and easing labor market strength.

    Silver technical analysis

    Silver price extends its losing streak for the third trading session on Friday. The white metal weakens after a breakdown below the upward-sloping trendline plotted from February 28 low at $22.28. The asset has dropped below the 20- and 50-day Exponential Moving Averages (EMAs), which trade around $30.20 and $29.66, respectively, suggesting that the near-term trend has turned bearish.

    On the downside, 4 December 2023 high at $25.90 will be a major support zone for the Silver price.

    The 14-day Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, suggesting a sideways trend.

    Silver 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.

     

  • 19.07.2024 05:02
    Silver Price Analysis: XAG/USD seems vulnerable near mid-$29.00s, over two-week low
    • Silver drifts lower for the third straight day on Friday and drops to over a two-week low.
    • The technical setup favors bearish traders and supports prospects for a further downfall. 
    • A move beyond the $30.30-$30.40 support-turned-resistance will negate the negative bias.

    Silver (XAG/USD) remains under some selling pressure for the third successive day on Friday and touches a two-and-half-week trough during the Asian session. The white metal currently trades around the $29.55-$29.60 region, down 0.80% for the day and the technical setup supports prospects for a further near-term depreciating move.

    Against the backdrop of the recent failure to build on the momentum beyond the $31.40 supply zone, this week's breakdown through a short-term trading range support was seen as a fresh trigger for bearish traders. Moreover, oscillators on the daily chart have just started gaining negative traction and suggest that the path of least resistance for the XAG/USD remains to the downside. 

    Hence, a subsequent slide towards testing the next relevant support near the $29.15 region, en route to the $29.00 mark, looks like a distinct possibility. Some follow-through selling below the latter might expose the June monthly swing low, around the $28.60-$28.55 area. The XAG/USD could eventually drop to the 100-day Simple Moving Average (SMA), currently pegged near the $28.00 mark.

    On the flip side, any attempted recovery might confront some hurdle near the Asian session peak, around the $29.80 region. This is closely followed by the $30.00 psychological mark, above which a bout of a short-covering move could lift the XAG/USD back to the $30.30-$30.40 trading range support breakpoint, now turned resistance. The momentum could extend towards the $31.00 round figure. 

    A sustained strength beyond the latter will negate any near-term negative bias and lift the XAG/USD back towards the $31.40 supply zone. Some follow-through buying, leading to a subsequent move beyond the monthly peak, around the $31.80 area, should allow bulls to retake the $32.00 mark and challenge the YTD peak, near the mid-$32.00s touched in May.

    Silver 4-hour chart

    fxsoriginal

    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.

     

  • 18.07.2024 13:11
    Silver Price Analysis: XAG/USD recovers slightly yet remains below $30.50
    • Silver prices edge up 0.30%, trading at $30.35 after a sharp 3% decline.
    • Technical outlook remains bullish, supported by the 50-DMA at $30.16 and RSI above the 50-neutral line.
    • Key resistance at $30.50 and $31.00; support levels at 50-DMA and $29.48, with a critical psychological barrier at $29.00.

    Silver's price edged up early in the North American session but remained below the psychological figure of $30.50 after posting losses of more than 3% on Wednesday. Rising US Treasury yields and a stronger US Dollar weighed on the precious metal, which trades at $30.35 and registers gains of 0.30%.

    XAG/USD Price Analysis: Technical outlook

    The grey metal remains bullish-biased, capped on the downside by the 50-day moving average (DMA) at $30.16. The Relative Strength Index (RSI) clings above the 50-neutral line, depicting that momentum favors buyers; hence, further upside is seen.

    For a bullish continuation, the XAG/USD must climb above $30.50 so buyers can test the $31.00 mark. On further strength, Silver’s next resistance would be the July 17 peak at $31.42, before testing July 12 high at $31.75.

    If the grey metal weakens further, the XAG/USD first support would be the 50-DMA before testing the July 3 daily low of $29.48. A breach of the latter will expose the $29.00 psychological 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.

     

  • 18.07.2024 07:57
    Silver Price Forecast: XAG/USD rises gradually to $30.50 ahead of China’s third Plenum outcome
    • Silver price gains to near $30.50 with a focus on China’s third Plenum outcome on Friday.
    • The Fed is widely anticipated to begin reducing interest rates in September.
    • US annual core inflation decelerated for the third month in a row.

    Silver price (XAG/USD) moves higher to near $30.50 in Thursday’s European session. The white metal recovers ahead of China’s third plenum meeting outcome on Friday. Investors expect that China’s Communist Party will take measures to boost economic growth through fiscal and monetary policy expansion.

    The World’s second-largest economy, which is a major consumer of Silver, which has applications in various sectors, is battling weak Gross Domestic Product (GDP) growth. The Chinese economy expanded at a slower pace of 0.7%, from the estimates of 1.1% and the former release of 1.5%, downwardly revised from 1.6%.

    Meanwhile, firm expectations for the Federal Reserve (Fed) to begin reducing interest rates from the September meeting have kept the US Dollar (USD) and bond yields on the back foot. Lower yields on interest-bearing assets reduce the opportunity cost of holding an investment in non-yielding assets, such as Silver.

    Contrarily, the US Dollar Index (DXY) edges up to 103.80 and 10-year US Treasury yields rise to 4.17% but remain close to multi-month lows.

    Higher speculation for Fed rate cuts in September was prompted by easing inflationary pressures and cooling labor market conditions. The United States (US) annual core inflation, which excludes volatile food and energy prices, decelerated for straight third month in June. In the same month, monthly headline inflation deflated for the first time in more than four years.

    Silver technical analysis

    Silver price turns sideways in a range between $30.40-$30.80 for more than one week. The near-term outlook of the Silver price remains firm as the asset holds the breakout of the Falling Channel formation on a four-hour timeframe.

    The 100-period Exponential Moving Average (EMA) near $30.50 continues to provide support to the Silver price bulls.

    The 14-period Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, exhibiting indecisiveness among market participants.

    Silver four-hour 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.

     

  • 18.07.2024 04:23
    Silver Price Analysis: XAG/USD seems vulnerable, short-term trading range breakdown in play
    • Silver attracts some buyers during the Asian session on Thursday, albeit lacks follow-through.
    • The overnight sustained breakdown through a short-term trading range favors bearish traders.
    •  Any subsequent move-up could attract fresh sellers and remain capped near the $31.00 mark.

    Silver (XAG/USD) ticks higher during the Asian session on Thursday and moves away from a two-week low, around the $30.00 psychological mark touched the previous day. The white metal currently trades around the $30.40 region, up nearly 0.35% for the day, though lacks bullish conviction. 

    From a technical perspective, the recent failure to build on the momentum beyond the $31.40 supply zone and the overnight breakdown through a short-term trading range support could be seen as a fresh trigger for bearish traders. That said, neutral oscillators on the daily chart warrant caution and make it prudent to wait for some follow-through selling below the $30.00 mark before positioning for any further depreciating move. 

    The XAG/USD might then weaken further below the $29.70 horizontal zone and test the next relevant support near the $29.15 region. This is closely followed by the $29.00 mark, which if broken decisively will expose the June monthly swing low, around the $28.60-$28.55 area. The white metal could eventually drop to the 100-day Simple Moving Average (SMA), currently pegged near the $28.00 round-figure mark.

    On the flip side, any subsequent move up is likely to confront stiff resistance ahead of the $31.00 mark. A sustained strength beyond has the potential to lift the XAG/USD back towards the $31.40 supply zone. Some follow-through buying, leading to a subsequent move beyond the monthly peak, around the $31.80 area, should allow bulls to retake the $32.00 mark and challenge the YTD peak, near the mid-$32.00s touched in May.

    Silver 4-hour chart

    fxsoriginal

    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.

     

  • 17.07.2024 21:48
    Silver Price Analysis: XAG/USD plunges more than 3%, slumps beneath $31.00
    • Silver drops sharply, with a 3.13% decline from weekly highs, driven by profit-taking.
    • Despite the fall, XAG/USD retains an upward bias, with support from the 50-day moving average at $30.12.
    • Watch for potential bearish continuation below $30.00; resistance levels are at $31.00 and the July 11 peak of $31.75.

    Silver prices tumbled from weekly highs hit on Tuesday at around $31.42 as traders took profits following a rally that lifted the grey metal’s prices more than 10% since the beginning of July. The XAG/USD trades at $30.28, down 3.13%.

    XAG/USD Price Analysis: Technical outlook

    Despite retreating, the XAG/USD is still upward biased, supported by the 50-day moving average (DMA) at $30.12, a level pierced during Wednesday’s session as Silver hit a daily low at $30.05.

    From a momentum standpoint, sellers are gathering traction, with the Relative Strength Index (RSI) aiming lower yet remaining in bullish territory.

    XAG/USD must clear the 50-DMA for a bearish continuation, followed by the $30.00 mark. If those two levels are surpassed, the next support would be the June 26 swing low of $28.57. On further weakness, Silver could fall to $28.00.

    On the flip side, if buyers stepped in and pushed prices above $31.00, that could expose the July 11 peak at $31.75. Further gains lie overhead at $32.00.

    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.

     

  • 17.07.2024 09:11
    Silver Price Forecast: XAG/USD edges lower to near $31.00 due to China’s concerns
    • Silver price depreciates due to a slowing economy in China, the world's largest manufacturing hub.
    • The third plenum has indicated no major changes in the economic strategy of top consumer China.
    • The non-yielding Silver struggled after Tuesday's hawkish remarks from Fed member Dr. Adriana Kugler.

    Silver price (XAG/USD) retraces its recent gains, trading around $30.90 per troy ounce during the European hours on Wednesday. The grey metal faces challenges due to a slowing Chinese economy, the world's largest manufacturing hub. China's industrial demand for Silver is significant, as it is essential in various applications such as electronics, solar panels, and automotive components.

    China's Gross Domestic Product (GDP) grew 4.7% year-over-year in the second quarter, compared to a 5.3% expansion in the first quarter and an expected 5.1%. This marks the slowest growth since the first quarter of 2023.

    The third plenum of the Chinese Communist Party's 20th National Congress, held from July 15 to 18, has so far indicated no major changes in the economic strategy of top consumer China. President Xi Jinping urged the Communist Party to maintain "unwavering faith and commitment" to its strategic agenda.

    Standard Chartered anticipates that the People's Bank of China (PBoC) will implement cuts in both interest rates and the reserve requirement ratio (RRR) as GDP growth decelerates in the second quarter. China's growth drivers remain uneven, and trade tensions are escalating, with the US and EU imposing new tariffs on Chinese electric vehicles (EVs).

    Additionally, Silver prices struggle due to the emergence of the hawkish sentiment surrounding the Federal Reserve (Fed) policy stance after the speech from Federal Reserve (Fed) Board of Governors member Dr. Adriana Kugler on Tuesday. Dr. Kugler indicated that if upcoming data does not confirm that inflation is moving toward the 2% target, it may be appropriate to maintain current rates for a while longer.

    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.

  • 17.07.2024 03:26
    Silver Price Analysis: XAG/USD bulls have the upper hand while above 100-hour SMA/$31.00
    • Silver lacks any firm intraday direction and oscillates in a range on Wednesday.
    • The overnight sustained breakout through a trading range favors bullish traders. 
    • Dips towards $31.00 could be seen as a buying opportunity and remain limited.

    Silver (XAG/USD) struggles to capitalize on the previous day's positive move and seesaws between tepid gains/minor losses during the Asian session on Wednesday. The white metal currently trades around the $31.25 region, nearly unchanged for the day and just below a fresh weekly peak touched earlier today.

    From a technical perspective, the overnight breakout through a multi-day-old trading range could be seen as a fresh trigger for bullish traders and support prospects for additional gains. Moreover, oscillators on the daily chart are holding in the positive territory and suggest that the path of least resistance for the XAG/USD is to the upside. Hence, any meaningful dip might still be seen as a buying opportunity and remain limited.

    Meanwhile, the trading range resistance breakpoint, around the $31.00 round figure, now coincides with the 100-hour Simple Moving Average (SMA) and should protect the immediate downside. A convincing break below might prompt some technical selling and drag the XAG/USD below the $30.75 area, towards testing the $30.55-$30.50 strong horizontal support, which should act as a key pivotal point for short-term traders. 

    On the flip side, the Asian session peak, around the $31.45 area, now seems to act as an immediate resistance, above which the XAG/USD could then surpass an intermediate hurdle near the $31.75 region and aim to reclaim the $32.00 mark for the first time since May 30. Some follow-through buying should pave the way for additional gains and a move towards challenging the YTD peak, around the $32.50 region touched in May.

    Silver 1-hour chart

    fxsoriginal

    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.

     

  • 16.07.2024 13:58
    Silver Price Forecast: XAG/USD gives up some gains as US Retail Sales data outperform
    • Silver price sacrifices some of its intraday gains as the US Dollar recovers strongly.
    • Better-than-expected US Retail Sales Control Group data has resulted in the US Dollar’s recovery.
    • Firm Fed rate-cut prospects keep the Silver price’s outlook strong.

    Silver price (XAG/USD) surrenders a majority of the gains and drops to near $30.50 in Tuesday’s American session. The white metal drops as the US Dollar (USD) recovers after the United States (US) Retail Sales report for June exhibited a better performance than market consensus.

    Monthly Retail Sales remained flat, as expected, but May’s reading was upwardly revised to 0.3% from 0.1%. Retail Sales Control Group, a key measure to consumer spending component of Gross Domestic Product (GBP) that excludes receipts from auto dealers, building-materials retailers, gas stations, office supply stores, mobile home dealers and tobacco stores, rose at a stronger pace of 0.9% than the former release of 0.4%.

    A slightly better Retail Sales report has improved the US Dollar’s appeal. However, the pace at which core Retail Sales have grown is incapable of reversing the disinflation process.

    The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, jumps to near 104.50. Higher US Dollar makes the Silver an expensive bet for investors.

    On a broader note, the Silver price remains firm amid strong speculation that the Federal Reserve (Fed) will start reducing interest rates from the September meeting. Market expectations for Fed rate cuts rose sharply after the Consumer Price Index (CPI) report for June showed that price pressures decelerated at a faster-than-expected pace.

    Silver technical analysis

    Silver price turns sideways in a range between $30.40-$30.80 for more than one week. The near-term outlook of the Silver price remains firm as the asset holds the breakout of the Falling Channel formation on a four-hour timeframe.

    The 50-period Exponential Moving Average (EMA) near $30.70 continues to provide support to the Silver price bulls.

    The 14-period Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, exhibiting indecisiveness among market participants.

    Silver four-hour 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.

     

  • 16.07.2024 07:43
    Silver Price Forecast: XAG/USD appreciates toward $31.00 due to rising bets of Fed rate cuts
    • Silver price edges higher due to the dovish sentiment surrounding the Fed regarding its policy stance.
    • Fed Chair Jerome Powell mentioned that inflation is on course to meet the Fed’s target in a sustainable manner.
    • Silver demand could face challenges as China's economy grew less than expected in Q2.

    Silver price (XAG/USD) halts its two-day losing streak, trading around $30.80 per troy ounce during the early European hours on Tuesday. This upward movement is attributed to dovish comments from Federal Reserve Chair Jerome Powell regarding the monetary policy stance, which has increased the appeal of precious metals. Lower borrowing costs make non-yielding assets like Silver more attractive to investors.

    Fed Chair Jerome Powell mentioned on Monday that three US inflation readings of this year "add somewhat to confidence" that inflation is on course to meet the Fed’s target sustainably, suggesting that a shift to interest rate cuts may not be far off.

    Additionally, Fed Bank of San Francisco President Mary Daly stated that inflation is cooling down in a way that bolsters confidence that it’s on its way to 2%. However, Daly added that more information is needed before making a rate decision.

    According to CME Group’s FedWatch Tool, markets now indicate an 85.7% probability of a 25-basis point rate cut at the September Fed meeting, up from 71.0% a week earlier. Investors will likely observe the US Retail Sales data for June, which are set to be released later in the day, for further insights into the US economic situation.

    The price of the grey metal may face challenges as economic data on Monday showed that China’s economy grew less than expected in the second quarter and weak domestic demand. Silver is essential in various industrial applications, such as electronics, solar panels, and automotive components. Given China's status as one of the world's largest manufacturing hubs, the country's industrial demand for Silver is significant.

    The third plenum of the Chinese Communist Party's 20th National Congress continues today, being held from July 15 to 18. Standard Chartered expects cuts from the People's Bank of China in rates and the reserve requirement ratio (RRR), as GDP growth decelerated in Q2. China’s growth drivers remain uneven, and trade tensions are rising, with the US and EU imposing new tariffs on Chinese electric vehicles (EVs).

    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.

  • 16.07.2024 02:42
    Silver Price Analysis: XAG/USD remains below $31.00 mark, bulls flirt with 200-hour SMA
    • Silver regains positive traction and stalls a two-day corrective slide from over a one-month top.
    • The technical setup warrants some caution before positioning for a further intraday move up. 
    • A breakout through a short-term trading range is needed to confirm the near-term direction.

    Silver (XAG/USD) attracts some buyers during the Asian session on Tuesday, snapping a two-day losing streak and stalling the recent pullback from the $31.75 area or its highest level since May 31 touched last week. The white metal currently trades around the $30.80-$30.85 region, up 0.45% for the day, with bulls now awaiting a sustained move beyond the 200-hour Simple Moving Average (SMA) before positioning for further gains.

    Looking at the broader picture, the XAG/USD remains confined in a multi-day-old trading range. Furthermore, neutral technical indicators on the 1-hour chart warrant some caution before positioning for a firm intraday direction. Meanwhile, oscillators on the daily chart are holding in the positive territory and suggest that the path of least resistance for the commodity is to the upside. That said, a convincing break below the short-term trading range support, near the $30.40-$30.35 area, will be seen as a fresh trigger for bearish traders and pave the way for deeper losses.

    The XAG/USD might then accelerate the downfall and weaken further below the $30.00 psychological mark, towards testing the next relevant support near the $29.75 horizontal zone. The downward trajectory could extend further towards intermediate support near the $29.40 region en route to the $29.00 round figure and the June monthly swing low, around the $28.55 area.

    On the flip side, any further move up is more likely to face some resistance near the $31.00 mark, representing the top end of the trading range. Acceptance above the said handle will suggest that the corrective decline has run its course and pave the way for a move towards the $31.30 hurdle before the XAG/USD eventually climbs to the monthly swing high, around the $31.75 region. The momentum could extend further towards reclaiming the $32.00 mark for the first time since May 30.

    Silver 1-hour chart

    fxsoriginal

    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.

     

  • 15.07.2024 20:38
    Silver Price Analysis: XAG/USD drops below $31.00 on high US yields
    • Silver holds near familiar levels, trading at $30.69 with minimal losses of 0.28%.
    • Technical analysis suggests possible pullback below $30.50 before resuming the uptrend.
    • Key resistance levels at $31.00 and $31.75, with potential to reach YTD high of $32.51.

    Silver prices remained at familiar levels on Monday, printing minimal losses of 0.28% as US Treasury bond yields from the belly and long-end curve edged higher. At the time of writing, the XAG/USD traded at $30.69 after hitting daily highs of $31.08 a troy ounce.

    XAG/USD Price Analysis: Technical outlook

    Silver consolidates beneath $31.00, though hovering around the ‘double bottom’ chart pattern neckline.

    Momentum remains flat as measured by the Relative Strength Index (RSI), which aimed lower but stood in bullish territory. Hence, XAG/USD could be headed for a pullback before the uptrend continues.

    If XAG/USD drops below the psychological $30.50 level, it could drive the spot price toward $30.00. Once cleared, the next target would be the confluence of the April 12 high and the 50-day moving average (DMA) at $29.82/79.

    On the flip side, the first resistance for XAG/USD would be at $31.00. Once this is cleared, the next resistance would be at $31.75, followed by the $32.00 psychological level. Surpassing this, the May 29 peak of $32.15 comes into focus, ahead of the year-to-date (YTD) high of $32.51. Further gains are anticipated above this level.

    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.

     

  • 15.07.2024 14:25
    Silver Price Forecast: XAG/USD hovers around $31 ahead of Fed Powell’s speech
    • Silver price trades in a tight range near $31 amid uncertainty over China’s third plenum outcome.
    • Firm Fed rate-cut hopes keep the near-term outlook of the Silver price as bullish.
    • Investors await Fed Powell’s speech for fresh guidance on interest rates.

    Silver price (XAG/USD) consolidates in a tight range near $31.00 in Monday’s North American session. The white metal struggles for direction as investors await Federal Reserve (Fed) Chair Jerome Powell’s speech at the Economic Club of Washington scheduled at 16:30 GMT.

    The commentary from Fed Powell will indicate about when the central bank will start reducing interest rates. Currently, financial markets are confident that the Fed will pivot to policy-normalization from September. Strong speculation for Fed rate cuts in September have weighed heavily on the US Dollar (USD) and bond yields.

    The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, sees more downside below the immediate support of 104.00. 10-year US Treasury yields rose to 4.22% but are close to near four-month low. Low interest rate environment is unfavorable for the US Dollar and bond yields.

    Despite firm Fed rate cut prospects, the near-term outlook of the Silver price is uncertain due to the ongoing four-day China’s third plenum meeting, which is scheduled for next week. China’ Communist Party is expected to take measures to boost real estate and manufacturing sector.

    Meanwhile, China’s weaker-than-expected Q2 Gross Domestic Product (GDP) growth has deepened uncertainty over Silver’s demand as a metal used in industry in manufacturing and automobile sectors.

    Silver technical analysis

    Silver price holds the breakout of the Falling Channel chart formation on a daily timeframe.  Advancing 20-period Exponential Moving Average (EMA) near $30.30 continues to provide support to the Silver price bulls.

    The 14-period Relative Strength Index (RSI) struggles to break above 60.00. A decisive break above the same would push the momentum toward the upside.

    Silver four-hour 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.

     

  • 15.07.2024 07:31
    Silver Price Forecast: XAG/USD falls toward $30.50 after mixed data from China
    • Silver price loses ground following mixed data from China, the world's largest manufacturing hub.
    • China's GDP (YoY) grew by 4.7% in Q2, down from the previous expansion of 5.3% and below the expected 5.1%.
    • The higher US Dollar puts pressure on Silver as USD-denominated commodities become more expensive for foreign buyers.

    Silver price (XAG/USD) extends losses for the second successive day, trading around $30.60 per troy ounce during the early European session on Monday. This downturn can be attributed to mixed economic data from China, applying mild pressure on the grey metal. Silver is essential in various industrial applications, such as electronics, solar panels, and automotive components. Given China's status as one of the world's largest manufacturing hubs, the country's industrial demand for Silver is significant.

    China's Gross Domestic Product (GDP) grew 4.7% year-over-year in the second quarter, compared to a 5.3% expansion in the first quarter and an expected 5.1%. China's Retail Sales (YoY) increased by 2.0% in June, falling short of the expected 3.3% and below May's 3.7%. Meanwhile, the country's Industrial Production for the same period showed a growth rate of 5.3% year-over-year, surpassing estimates of 5.0%, albeit slightly lower than May's 5.6%.

    The US Dollar (USD) improves due to improved risk aversion following the attempted assassination of former US President Donald Trump on Saturday. Analysts suggest that if this incident boosts Trump's election prospects, it could lead to so-called 'Trump-victory trades,' which may include a stronger US Dollar and a steeper US Treasury yield curve, according to Reuters. A strong US Dollar puts pressure on commodity prices like Silver. This is because commodities priced in dollars become more expensive for foreign buyers, reducing overall demand.

    The non-yielding metals like Silver may find support due to rising expectations of a potential Federal Reserve (Fed) rate cut in September. This anticipation is driven by the softer-than-expected US Consumer Price Index (CPI) data in June. According to CME Group’s FedWatch Tool, markets now indicate an 88.1% probability of a 25-basis point rate cut at the September Fed meeting, up from 72.2% a week earlier.

    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.

     

  • 12.07.2024 20:54
    Silver Price Analysis: XAG/USD makes a U-turn and slides below $31.00
    • Silver retreats over 2% yet holds above $30.78 'double bottom' neckline.
    • Downward momentum noted, but RSI in bullish range hints at potential rebound.
    • Key support at $30.50; further levels at $30.00 and $29.82/79 zone.
    • Resistance points at $31.00, $31.75, $32.15, aiming for the YTD high of $32.51.

    Silver price reversed course and registered losses of more than 2% on Friday, though it remained above the ‘double bottom’ neckline, keeping the short-term uptrend alive. At the time of writing, the XAG/USD trades at $30.78 after hitting a daily high of $31.43.

    XAG/USD Price Analysis: Technical outlook

    Silver’s daily chart depicts the grey metal’s uptrend is in play, but Friday's price action hints that sellers stepped in aggressively, achieving a daily close near Thursday’s open at $30.79.

    Momentum tilted to the downside, as depicted by the Relative Strength Index (RSI), which aimed lower but stood in bullish territory. Hence, XAG/USD could be headed for a pullback before the uptrend continues.

    If XAG/USD drops below the psychological $30.50 figure, that could drive the spot price toward the $30.00 level. Once cleared, the next stop would be the confluence of the April 12 high and the 50-day moving average (DMA) at $29.82/79.

    On the flip side, the XAG/USD first resistance would be $31.00. Once cleared, the next resistance would be $31.75, followed by the $32.00 psychological figures. Once surpassed, the May 29 peak of $32.15 emerges, ahead of the year-to-date (YTD) high at $32.51. Further gains are seen above the latter.

    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.

     

  • 12.07.2024 14:33
    XAU/USD and XAG/USD lose their longs – TDS

    Gold (XAU/USD) traded strong Thursday, commodity trading advisors (CTAs) are unwinding a portion of their length. As for Silver (XAG/USD) top Shanghai Futures Exchange (SHFE) funds promptly reduced their net position by 9k lots, TDS commodity traders note.

    Asian demand is set to remain strong

    “Despite the strong move yesterday in Gold, CTAs are unwinding a portion of their length, needing to see prices comfortably above $2,437/oz to add back more length. While some money managers may be taking profits near all-time highs, the below-expected inflation data and softer employment data bolstered expectations of a September start to the Fed cutting cycle.”

    “The first evidence of renewed interest is starting to show as ETF positions continue to rise in July, after June saw the first monthly increase since May 2023. While Chinese Gold reserves were flat for a second consecutive month amid their noted pause in buying, top traders on the SHFE have added back to their net positions, highlighting Asian demand is set to remain strong.”

    “As for Silver, after the noted sizable build in positioning, top SHFE funds promptly reduced their net position by 9k lots overnight, while CTAs could also turn sellers below $30.78/oz.”

  • 12.07.2024 09:53
    Silver Price Forecast: XAG/USD declines to $30.70 amid uncertainty ahead of China’s third plenum
    • Silver price tumbles to near $30.70 as investors turn cautious ahead of China’s third plenum.
    • Firm speculation for Fed rate cuts in September keeps the Silver price outlook firm.
    • Investors await the US PPI data for more guidance on interest rates.

    Silver price (XAG/USD) plummets to near $30.70 from a six-week high of $31.80 in Friday’s European session. The white metal weakens as investors turn cautious ahead of China’s third plenum meeting, which is scheduled for next week.

    Top members of the ruling Communist Party are expected to announce policies favoring a boost to real estate and activities in the manufacturing sector and measures to prompt consumer spending. A larger-than-expected boost for fiscal spending in the world’s second-largest nation would propel Silver’s demand outlook. The industrial demand of the white metal has increased significantly in sectors like automobiles and green hydrogen etc.

    Meanwhile, the broader outlook of the Silver price remains firm as the recent United States (US) Consumer Price Index (CPI) report for June has confirmed that price pressures are on course to return to the desired rate of 2%. Signs of resumption in the disinflation process have prompted expectations of early rate cuts by the Federal Reserve (Fed) Traders have raised bets significantly in favor of the Fed to begin reducing interest rates from the September meeting.

    Rising expectations for Fed rate cuts have weighed heavily on the US Dollar (USD) and bond yields. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, falls to 104.35. 10-year US Treasury yields rebound to near 4.22% but have fallen vertically from 4.30%.

    In Friday’s session, investors will focus on the US Producer Price Index (PPI) data for June, which will be published at 12:30 GMT.

    Silver technical analysis

    Silver price trades sideways in a narrow range around $31.00, suggesting a sharp volatility contraction. The overall trend remains bullish as it has turned sideways after a decisive breakout of the Bullish Flag chart formation on a four-hour timeframe.

    The 50-period Exponential Moving Average (EMA) near $30.65 continues to provide support to the Silver price bulls.

    The 14-period Relative Strength Index (RSI) fails to break above 60.00. A decisive break above the same would push the momentum toward the upside.

    Silver four-hour 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.

     

  • 12.07.2024 04:48
    Silver Price Forecast: XAG/USD faces some selling pressure below $31.50 as US Dollar rebounds
    • Silver price trades in negative territory around $31.25 in Friday’s early Asian session, down 0.75% on the day. 
    • The rate cut hopes by the Fed and safe-haven flows add sparkle to Silver.
    • Firmer US Dollar demand and the Fed’s hawkish stance might cap the white metal’s upside. 

    Silver price (XAG/USD) attracts some sellers near $31.25, snapping the three-day winning streak during the early European trading hours on Friday. The white metal trims gains amid the modest rebound of the Greenback. However, the downside might be limited as traders raise their bets on the Federal Reserve (Fed) rate cut in September. 

    The US Bureau of Labor Statistics (BLS) revealed on Thursday that the US Consumer Price Index (CPI) increased 3.0% YoY in June, compared to a rise of 3.3% in May, This figure was below the market consensus of 3.1%. On a monthly basis, the CPI declined 0.1% MoM in June, the lowest level in more than three years. 

    Financial markets saw a nearly 85% chance of a Fed rate cut in September, up from the 73% seen before the CPI report, according to CME Group’s FedWatch Tool. The growing hopes for rate cuts from US central bank is due to recently softer US inflation data and weaker Services Purchasing Managers Index (PMI). 

    Additionally, geopolitical risks and political uncertainty in the US and Europe might boost the safe-haven flows, which benefit the Silver. Also, the concerns about global economic slowdown also lift the white metal as traders find safe destinations to place their funds. 

    On the other hand, the renewed Greenback demand and the hawkish message from Fed officials might drag the Silver price lower. Fed Chair Jerome Powell emphasized on Wednesday before the US House Financial Services Committee that it would not be appropriate to cut the policy rate until they gain greater confidence in inflation heading sustainably towards the Fed’s 2% target. 

    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.

     

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