Silver Price Forecast: XAG skyrockets above $60, tests 50-day SMA
Silver (XAG/USD) price surges more than 4% on Wednesday as the Greenback remains on the back foot due to softer-than-expected jobs and data, though the fall was capped as business activity in the services sector continued to expand.
Silver prices experienced a significant surge over 4% on Wednesday, defying a weakening US Dollar due to subpar jobs and economic data. However, the rally was restrained by the 50-day Simple Moving Average (SMA), which currently hovers around $62.65. As of the latest update, XAG/USD was trading at $62.21, marking its highest level in the past month.
To continue its upward trajectory, Silver must overcome the 50-day SMA. The Relative Strength Index (RSI) indicates a bullish momentum, suggesting an upward trend. Bulls need to reclaim the psychological $65 level to fully regain control, after which they should focus on the 100-day SMA ($69.22) and eventually the $70 milestone.
Another point of interest is the 200-day SMA at $71.06. On the downside, if XAG/USD falls below $62, it could trigger a move towards the August 3 low of $59.40, potentially leading to a retest of the yearly low of $54.77. Silver is a popular investment option for those looking to diversify their portfolio due to its intrinsic value and potential as a hedge against inflation.
It can be bought in physical form or traded through Exchange Traded Funds that mirror its price on international markets. The price of Silver fluctuates due to various factors, including geopolitical tensions, recession fears, lower interest rates, and the US Dollar's performance. Silver's value is also influenced by investment demand, mining supply, and recycling rates.
Its industrial applications, particularly in electronics and solar energy, can impact its price, as a surge in demand may lead to an increase. The Gold/Silver ratio, which indicates the number of Silver ounces required to equal one ounce of Gold, can help determine the relative worth of the two metals. A high ratio may signal that Silver is undervalued, while a low ratio might suggest that Gold is undervalued relative to Silver.
Analysts, news editors, and trading instructors with extensive experience across various markets have been closely monitoring Silver's performance.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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