Silver (XAG/USD) is attracting some dip buying near the mid-$64.00 area during the Asian session on Friday and stalling the previous day’s modest rebound decline. The white metal has risen again to near the round $66.00 figure in the past hour and remains within striking distance of the all-time high it reached on Wednesday.
The XAG/USD pair is once again finding good support near the upward-sloping 100-hourly simple moving average (SMA), keeping buyers in control. It offers dynamic support at $64.75, and stability above this rising average would maintain the bullish tone. The Moving Average Convergence Divergence (MACD) histogram has become positive and expanding, indicating that the MACD line has crossed above the signal line near the zero level. Momentum is improving, and a continued push into positive territory would strengthen the uptrend.
The Relative Strength Index (RSI) stands at 56, which is neutral to bullish and below overbought territory, supporting scope for further gains if buyers maintain control. However, the daily RSI is indicating extended conditions, making it wise to wait for some near-term consolidation or modest pullback before positioning for any further upward movement. This, in turn, suggests that the XAG/USD pair may face some moderate hurdles near the $66.50-$66.55 area.
This is followed by a record high around the $67.00 area, which should cap the upside in the XAG/USD pair. However, sustained strength beyond the aforementioned handle will be seen as a fresh incentive for bullish traders and reaffirms the positive near-term outlook.
On the flip side, the $65.40-$65.35 area now appears to be protecting the immediate downtrend ahead of the $65.00 psychological level. This is closely followed by the 100-hour SMA pivotal support, around the $64.75 area, which, if broken decisively, could trigger some technical selling and set the stage for a deeper corrective decline. The XAG/USD pair may then accelerate the decline towards testing sub-$64.00 levels before eventually falling to the $63.35 intermediate support level on its way to the $63.00 mark.
(Part of the technical analysis for this story was written with the help of an AI tool)
XAG/USD 1 hour chart
Frequently asked questions about silver
Silver is a precious metal that is widely traded among investors. It has been used historically as a store of value and 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 periods of high inflation. Investors can buy physical silver, in the form of coins or bullion, or trade it through instruments such as exchange-traded funds, which track its price in international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession could cause the price of silver to rise due to its safe-haven status, although to a lesser extent than the price of gold. As a non-yielding asset, silver tends to rise as interest rates fall. Its movements 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, while a weak dollar is likely to push prices higher. Other factors such as investment demand, mining supplies – silver is more plentiful than gold – and recycling rates can also influence prices.
Silver is widely used in industry, especially in sectors such as electronics or solar energy, as it has one of the highest electrical conductivity of all metals – more than copper and gold. A rise in demand can cause prices to rise, while a fall tends to bring them down. Dynamics in the economies of the United States, China and India can also contribute to price fluctuations: for the United States, and especially China, its large industrial sectors use silver in various processes; In India, consumer demand for the precious metal used in jewelery also plays a major role in determining prices.
Silver prices tend to follow gold movements. When gold prices rise, silver usually follows suit, as its status as a safe haven asset is similar. The gold/silver ratio, which shows how many ounces of silver are needed to equal the value of one ounce of gold, may help determine the relative valuation between the two metals. Some investors may consider a high ratio to be an indication that silver is undervalued, or that gold is undervalued. Conversely, a low ratio may indicate that gold is undervalued compared to silver.
