The price of silver (XAG/USD) rose for the second day in a row, trading around $84.30 per ounce during the early European hours on Monday. Technical analysis of the daily chart time frame indicates that the price of the precious metal is still within an ascending channel pattern, indicating a continued bullish bias.
The 14-day Relative Strength Index (RSI) at 70.66 (overbought) indicates extended strength that could lead to consolidation in the near term. Silver price is holding well above the nine-day exponential moving average (EMA) and 50-day EMA, keeping the uptrend intact. The short-term moving average continues to rise above the medium-term moving average, confirming the short-term momentum.
On the upside, silver price may test the record high at $85.87 which was recorded on December 29, 2025, followed by the upper boundary of the ascending channel around $88.40.
Initial support lies at the nine-day moving average at $77.94, followed by the lower limit of the ascending channel around $76.40. A daily close below the confluence support area will expose the 50-day base at $64.39.
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.
(Technical analysis of this story was written with the help of an artificial intelligence tool)
