Silver’s price continued its downward trend for the third consecutive day, staying below the crucial $27.00 mark. The geopolitical tensions in the Middle East have failed to boost silver’s value, as it remains capped by the rising US Treasury yields and a robust US Dollar. Currently, XAG/USD is trading at $26.59, marking a 1.38% decline.
XAG/USD Price Forecast: Technical Outlook
The struggle for silver to sustain above $27.00 indicates a potential deeper pullback, with momentum favoring sellers as the Relative Strength Index (RSI) remains in bearish territory.
If XAG/USD fails to hold above $27.00, the first support levels to watch are the August 5 low at $26.51, followed by the 200-day moving average (DMA) at $26.06. Further downside could see a test of the March 27 pivot low at $24.33.
On the upside, a reversal in price action with a break above $27.00 could lead to a test of the August 6 peak at $27.56. Subsequent resistance levels include $28.00 and the August 5 high at $28.67.
XAG/USD Price Action – Daily Chart
Silver FAQs
- Silver is a precious metal traded among investors for its value and as a hedge during high-inflation periods.
- Factors like geopolitical instability, interest rates, US Dollar strength, and industrial demand influence silver prices.
- Silver is widely used in industries like electronics and solar energy, affecting its price.
- Silver prices often follow gold’s movements, with the Gold/Silver ratio indicating relative valuation between the two metals.
Analysis and Conclusion
The current scenario in the silver market reflects a bearish trend, with prices facing pressure from a strong US Dollar and geopolitical concerns. Investors should closely monitor key support levels at $26.51 and $26.06, as a breach could lead to further downside towards $24.33. On the other hand, a breakout above $27.00 may signal a potential rally towards $28.67. Understanding the factors influencing silver prices, such as industrial demand and global economic dynamics, can help investors make informed decisions in this volatile market.