Silver prices fell 0.54% during the North American session on Friday, driven by higher US Treasury yields and a sudden change in market sentiment after US President Trump revealed that the ceasefire is “over”. At the time of writing, XAG/USD is trading at $59.66.
XAG/USD Price Forecast: Technical Outlook
Silver is biased to the downside, as the market structure continues to respect a series of lower highs and lower lows. The Relative Strength Index (RSI) remains bearish, below its 50-neutral level and aiming towards the oversold zone. Given the reasons mentioned above and geopolitical uncertainty, the path of least resistance for XAG/USD is to the downside.
For a bearish resumption, traders would need to surpass the July 8 daily low of $57.22. Below is the year-to-date (YTD) low of 55.63, which was set on June 22, as the white metal fell below the 200-day simple moving average (SMA) since mid-June. A breach of those two levels opens the door to a move to high-support at $54.30 on November 13, 2025.
On the other hand, if buyers retest the downslope resistance trend line drawn from the June highs within the $62.25-$62.50 area, silver could turn neutral. Once the barrier is reached, it opens the door to challenge the 50-day and 200-day SMAs, each at $69.94 and $70.31.
XAG/USD Price Chart — Daily
Silver FAQ
Silver is a precious metal that is highly traded among investors. Historically it has been used as a store of value and medium of exchange. Although less popular than gold, traders may turn to silver to diversify their investment portfolios, for its intrinsic value, or as a potential hedge during high inflation periods. Investors can purchase physical silver in coins or bars, or trade it through vehicles such as exchange traded funds, which track its price in international markets.
Silver prices may increase due to many factors. Geopolitical instability or fears of a deep recession may cause the price of silver to rise due to its safe-haven status, although to a lesser extent than gold. As a yield free asset, silver tends to rise with low interest rates. Its movement also depends on how the US dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong dollar keeps the price of silver in check, while a weak dollar will likely push prices higher. Other factors such as investment demand, mining supply – silver is much more abundant than gold – and recycling rates can also influence prices.
Silver is widely used in industry, especially in areas such as electronics or solar energy, because it has the highest electrical conductivity of all metals – even higher than copper and gold. An increase in demand can cause prices to rise, while a decline can cause prices to decrease. Dynamics in the US, Chinese and Indian economies can also contribute to price fluctuations: for the US and especially China, their large industrial sectors use silver in a variety of processes; In India, consumer demand for the precious metal for jewelery also plays an important role in determining prices.
Silver prices follow the movement of gold. When gold prices rise, silver usually follows, as they have the same status as a safe-haven asset. The gold/silver ratio, which shows the number of ounces of silver required to equal the value of one ounce of gold, can help determine the relative valuation between the two metals. Some investors may consider a high ratio as an indicator that silver is undervalued, or gold is overvalued. Conversely, a low ratio may indicate that gold is less valuable than silver.
