Key Moments
- XAG/USD trades near $88.20 per ounce after four consecutive sessions of gains.
- Price remains above the nine-day EMA at $83.03 and the 50-day EMA at $80.15, preserving a short-term bullish structure.
- Upside focus stays on the all-time high region at $121.66, while a break below key EMAs could open the way toward $64.08.
Short-Term Trend Remains Constructive
Silver (XAG/USD) is easing after a four-day advance, changing hands around $88.20 per troy ounce in early European trading on Tuesday. On the daily timeframe, the 14-day Relative Strength Index (RSI) prints at 54, a neutral reading that nonetheless sits above the midpoint, signaling modest positive momentum.
The metal continues to trade above both the nine-day Exponential Moving Average (EMA) and the 50-day EMA, which together underpin the current short-term uptrend. As long as price stays above the rising 50-day EMA, any dips are likely to encounter initial support around the nine-day EMA within the ongoing recovery phase.
Upside Targets and Resistance Levels
Both the nine-day and 50-day EMAs are trending higher, and the shorter-tenor average is positioned above the longer one, reflecting sustained upside pressure. This configuration keeps the focus on the upside and could enable XAG/USD to revisit the area near the all-time high of $121.66, which was set on January 29.
Key Support Markers on the Downside
On the downside, the first notable support level is located at the nine-day EMA near $83.03. Below that, the 50-day EMA at $80.15 represents the next technical floor. A decisive move under these moving averages would damage the current bullish setup and could shift attention toward the support level at the two-month low of $64.08, registered on February 6.
| Level | Type | Price (XAG/USD) | Notes |
|---|---|---|---|
| $121.66 | Resistance | $121.66 | All-time high reached on January 29 |
| $88.20 | Current price | $88.20 | Early European session on Tuesday |
| $83.03 | Support | $83.03 | Nine-day EMA |
| $80.15 | Support | $80.15 | 50-day EMA |
| $64.08 | Support | $64.08 | Two-month low recorded on February 6 |
XAG/USD Technical Overview
The daily chart configuration, with price above both rising EMAs and a neutral-to-positive RSI, underlines a constructive bias for silver in the near term. However, the integrity of this structure depends on the market’s ability to defend the $83.03 and $80.15 levels. A break below these zones would shift the focus to deeper support, highlighted by the $64.08 low.
XAG/USD: Daily Chart
(The technical analysis of this story was written with the help of an AI tool.)
Silver FAQs
Why do people invest in Silver?
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.
Which factors influence Silver prices?
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.
How does industrial demand affect Silver 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.
How do Silver prices react to Gold’s moves?
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.
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