The price of silver (XAG/USD) rose more than 4.50% on Tuesday, hitting a five-day high, hitting $59.00, as buyers are pushing the white metal to test the downslope resistance trendline near the $59.65/$50.75 range, which is about to surpass the $60.00 mark.
XAG/USD Price Forecast: Technical Outlook
From a technical perspective, it looks like XAG/USD is about to break the downtrend resistance line, which could open the door to a recovery. The Relative Strength Index (RSI) shows that buyers are gaining momentum, which suggests that silver may test higher levels in the near term.
If XAG/USD clears $59.75, the immediate test would be $60.00. Violation of the latter opens the way to challenging the 50-day simple moving average (SMA) at $66.89 ahead of the June 22 daily peak of $67.17. Above, the next area of interest will be the psychological $70.00.
On the downside, silver’s first support is the low of the day (LOD) at $56.11. The low is $55.00, followed by the November 13, 2025 high support at $54.39, followed by the $55.00 milestone.
XAG/USD daily price chart
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 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.
