Key Moments
- Silver (XAG/USD) trades just above $74.00 after bouncing from seven-month lows near $64.00.
- The metal has dropped almost 30% over the past two weeks. This decline follows easing geopolitical tensions and recent US political developments.
- Technical indicators remain bearish as XAG/USD trades below the key $92.00 resistance zone.
Price Action and Market Drivers
Silver is recovering slightly in early European trading on Friday. It holds just above $74.00 after hitting new seven-month lows near $64.00. Despite this bounce, upside momentum stalls below the $75.00 zone, which now acts as resistance.
Over the last two weeks, the white metal has lost nearly 30% of its value. Investors reacted to US political news, including the appointment of Kevin Warsh as Fed chairman replacement, and to easing geopolitical risks as US-Iran talks began. These factors have weighed on sentiment and pressured Silver.
Technical Outlook: Bias Remains Negative Below $92.00
The technical backdrop continues to favor the bears. The 50-period Simple Moving Average (SMA), which previously supported prices, now slopes downward. Silver trades below this indicator, signaling weakness.
The MACD line dropped below zero, indicating weakening momentum. Meanwhile, the RSI stays under 50, showing low buying interest.
Key Levels to Watch
Silver’s recovery has stalled near $75.00, capping short-term gains. Intraday resistance is around $81.00, while a stronger barrier sits near Wednesday’s high at $92.00.
On the downside, immediate support lies at $64.08. A break below this could bring the $60.00 psychological level into play, followed by early December lows near $56.00.
| Level | Type | Description |
|---|---|---|
| $92.00 | Resistance | Key zone near Wednesday’s high; bearish threshold |
| $81.00 | Resistance | Intraday resistance |
| $75.00 | Resistance | Former support now capping recovery |
| $74.00 (area) | Current price | Trading just above this level in early European session |
| $64.08 | Support | Immediate support at daily low |
| $60.00 | Support | Psychological level below current lows |
| $56.00 (area) | Support | Early December lows if downside extends |
Silver FAQs
Why do people invest in Silver?
Silver is a popular precious metal. Investors use it as a store of value and sometimes as a hedge during inflation. Though less popular than Gold, it can diversify portfolios. Investors can buy physical Silver in coins or bars or trade it through Exchange Traded Funds (ETFs), which track international prices.
Which factors influence Silver prices?
Silver prices respond to many factors. Geopolitical instability or recession fears can boost its value due to safe-haven demand. Lower interest rates usually support prices because Silver yields no interest. US Dollar strength matters: a strong Dollar can cap Silver gains, while a weaker Dollar can lift prices. Other factors include investment demand, mining supply, and recycling rates.
How does industrial demand affect Silver prices?
Silver is widely used in electronics, solar energy, and other industries due to its high conductivity. Rising industrial demand can push prices higher, while weak demand can pull prices down. Economic activity in the US, China, and India also affects prices, as these countries are large consumers of Silver for industry or jewelry.
How do Silver prices react to Gold?
Silver often follows Gold’s moves because both are safe-haven assets. The Gold/Silver ratio shows how many ounces of Silver equal one ounce of Gold. A high ratio may indicate Silver is undervalued, while a low ratio may suggest Gold is undervalued relative to Silver.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
