The price of silver (XAG/USD) rose more than 4% on Thursday after bouncing from a daily low of $61.51, the lowest level since March 23, after US President Donald Trump announced he had canceled strikes scheduled against Iran this evening, saying the final points of an agreement had been approved. At the time of writing, the XAG/USD pair is trading at $65.91.
XAG/USD Price Forecast: Technical Outlook
There was a declining trend in silver. Even though there has been some recovery, it remains below the 200-day simple moving average (SMA) of $68.31, which is used to signal changes in the asset’s direction.
The Relative Strength Index (RSI) has broken out of the oversold zone, which is a sign that buyers have moved in, but the index remains below the 50-neutral level, indicating that the white metal is inclined to the downside.
If silver surpasses the $67.00 mark, it will open the door to challenging the 200-day SMA. Above this level, the next stop will be the $70.00 milestone.
On the bearish side, the first support for XAG/USD is the current week’s low at $61.50. A breach of the latter would expose the $60.00 mark, followed by higher support at $54.39 on November 13, 2025.
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 undervalued compared to silver.
