Silver Pushes Higher as XAG/USD Nears $100

Key Moments

Technical Outlook: Bulls Maintain Control

Silver extended its advance for a second session, trading around $99.10 during Asian hours on Friday. It also reached a fresh high at $99.39 as bullish momentum stayed strong.

Moreover, the price remains above the rising nine-day EMA. The 50-day EMA is also trending higher, reinforcing the medium-term bullish outlook. The growing gap between these two EMAs shows trend strength and confirms buyers remain in control.

Momentum Signals and Upside Targets

The 14-day RSI stands at 74.66, which puts it in overbought territory. This suggests momentum is stretched, and a short pause could occur. Still, the uptrend stays intact as long as the price holds above the nine-day EMA.

If buyers defend dips, the bullish bias will likely continue. In that case, the price could break above the channel’s upper boundary near $99.80. After that, the next key level is the psychological $100 mark.

Key Support Levels and Downside Risks

On the downside, initial support may appear near the nine-day EMA at $92.42. A daily close below this level would increase the risk of a deeper pullback toward the lower channel boundary near $82.00.

If the price falls below that area, the 50-day EMA at $73.14 would likely become the next key support.

XAG/USD – Daily Chart Reference Levels

(The technical analysis of this story was written with the help of an AI tool.)

Silver as an Investment Asset

Silver is a widely traded precious metal. It has long served as both a store of value and a medium of exchange. Although it gets less attention than gold, investors still use it to diversify portfolios and hedge inflation.

Investors can access silver through physical holdings such as coins and bars. They can also use ETFs that track silver prices in global markets.

Drivers of Silver Price Movements

Silver reacts to many macro and market forces. Geopolitical tensions or fears of an economic downturn can lift silver because it acts as a safe-haven asset, though usually less than gold.

Also, silver tends to benefit when interest rates fall, since it pays no yield. The US dollar also matters. A strong dollar usually limits silver’s upside, while a weaker dollar supports it.

Beyond macro trends, investment flows, mine output, and recycling also influence supply and demand and shape prices.

Industrial Demand and Economic Links

Silver plays a major role in industrial applications, especially electronics and solar. It has very high electrical conductivity, which is higher than copper and gold.

Strong industrial demand can push prices higher. Conversely, a slowdown in manufacturing can weigh on silver.

Economic activity in the US, China, and India also affects silver. China drives industrial demand, while India remains a key consumer for silver jewelry.

Relationship Between Silver and Gold

Silver often moves in line with gold. When gold rises, silver usually follows, reflecting their shared safe-haven status. The gold/silver ratio, which shows how many ounces of silver it takes to buy one ounce of gold, also helps traders track relative value.

Some investors interpret a high gold/silver ratio as a sign that silver is undervalued or gold is overvalued. Conversely, a low ratio can suggest that gold is undervalued relative to silver.