Silver Price Forecast: XAG pullback puts $63.50 in focus

Silver's price experienced a 2.70% drop on Tuesday, reaching $64.77, despite stable US Treasury yields and the Greenback. The XAG/USD showed a neutral to upward-biased technical setup after reaching the 50-day SMA. The lower highs and lower lows market structure may be broken if Silver clears the June 16 high of $71.19. Momentum indicates buyers still control the market, but a dip in the RSI suggests consolidation ahead.

For a bullish continuation, the XAG/USD must surpass the 100-day SMA at $68.93, followed by the $70.00 psychological level and June 16 high at $71.19, then the 200-day SMA at $71.39. A retreat below the August 10 low of $63.28 could trigger a deeper pullback, with the 50-day SMA at $61.76 and $60.00 milestones of interest. Silver, historically used as a store of value and hedge during inflation, can be bought physically or through ETFs.

Its price is influenced by geopolitical factors, interest rates, USD movements, investment demand, mining supply, and recycling rates. Silver's industrial uses in electronics and solar energy can also affect prices. The Gold/Silver ratio may indicate relative valuation between both metals. Analysts suggest Gold's rebound to $4,400 per troy ounce is driven by mixed US Treasury yields, geopolitical concerns, and a declining USD. Meanwhile, diesel prices show a different trend with a record premium over WTI.