Silver Price Analysis: XAG/USD Faces Key Support Test

Silver is currently testing initial support at the crucial $38.00 level, coinciding with the nine-day EMA at $37.96. The 14-day Relative Strength Index (RSI) remains above 50, suggesting a potentially bullish outlook. Key resistance lies at the upper boundary of the descending channel around $38.60. After two days of upward movement, the Silver price (XAG/USD) is currently trading around $38.10 per troy ounce during European trading hours. Daily chart technical analysis indicates that the price remains within a descending channel, indicating a prevailing bearish sentiment. The 14-day RSI is positioned above the 50 mark, hinting at the possibility of a bullish market. Furthermore, the Silver price is trading slightly above the nine-day Exponential Moving Average (EMA), suggesting strengthening short-term price momentum. The Silver price is testing immediate support at the psychological level of $38.00, aligning with the nine-day EMA at $37.96. A break below this crucial support zone could reinforce the bearish bias and lead to a test of the 50-day EMA at $37.21. Further declines may weaken medium-term price momentum, potentially pushing the XAG/USD pair towards the lower boundary of the descending channel around $35.60, followed by the 11-week low recorded on June 24 at $35.28. Conversely, the XAG/USD pair may encounter initial resistance at the upper boundary of the descending channel near $38.60. A breakout above this channel could validate the bullish outlook, potentially supporting the Silver price to explore the $39.53 region, the highest level since September 2011, reached on July 23.

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.

Risk Warning and Disclaimer: This article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform. Trading Contracts for Difference (CFDs) involves high leverage and significant risks. Before making any trading decisions, we recommend consulting a professional financial advisor to assess your financial situation and risk tolerance. Any trading decisions based on this article are at your own risk.

சமீபத்திய செய்திகள்

சனி, 11 அக்டோபர் 2025

Indices

Stablecoins as Key U.S. Treasury Market Players: A Look at Shifting Dynamics

சனி, 11 அக்டோபர் 2025

Indices

Powell Paves Way for Rate Cut, But Economic Data Could Upend Bets

சனி, 11 அக்டோபர் 2025

Indices

Japan PM Ishiba's Approval Ratings Surge Amid Election Performance Review