Silver (XAG/USD) has lost more than $10, hammered by a risk-averse reaction to US President Trump’s televised message on Wednesday. The precious metal is testing levels below $71.00 at the time of writing, after peaking at $81.13 on Wednesday, as the Dollar prevails in risk-averse markets.
Trump failed to give any specific date for the end of the Iran war, as everybody had expected. The US president, instead, reiterated the aggressive threats against the Islamic Republic and his calls on allies to “build up the courage” to secure the Strait of Hormuz. Tehran responded, pledging with devastating attacks on Israel and the US, which pushes back any hope of a de-escalation.
Technical Analysis: Silver breaks the near-time bullish trendline
The hourly chart shows XAG/USD trading at $70.80 after breaching the ascending trendline support at $71.70. The near-term bias has turned bearish as the Relative Strength Index (RSI) retreated toward the low-30s from prior readings near 60, signaling mounting downside momentum. The Moving Average Convergence Divergence (MACD) remains below the signal line, reinforcing sustained selling pressure.
The intra-day low, at $69.65, might provide some support as technical indicators approach oversold levels. Further down, the March 26 low, near $66.70, comes into focus. The March 23 low, at $61.40 aeems out of sight at the moment.
On the upside, the previous trendline support, at the mentioned $71.70, has now turned resistance and is closing the path towards the intra-day high, at $75.88.
(The technical analysis of this story was written with the help of an AI tool.)
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.
Source: https://www.fxstreet.com/news/silver-price-forecasts-xag-usd-dips-below-7100-amid-overall-us-dollar-strength-202604021141
