Silver Price Forecast: XAG/USD tests 100-day SMA as rally extends
Silver price extended its gains on Thursday, up more than 1.70%, even as US yields recovered some ground and then resumed their rise following the US Treasury bond buyback announcement. The XAG/USD trades at $68.18 at the time of writing.
Silver prices continued their upward trend on Thursday, with the XAG/USD trading at $68.18, up more than 1.70%. The silver market is approaching the 100-day Simple Moving Average (SMA) of $68.51, indicating a bullish momentum. The Relative Strength Index (RSI) is above its neutral level, suggesting that the price may be approaching overbought territory.
For the silver to maintain its bullish bias, it needs to reclaim the 100-day SMA. The next resistance level is $70.00, followed by the 200-day SMA at $71.97. If the price clears this level, the psychologically significant $75.00 mark becomes the next area of interest. The first support is the low of the day (LOD) at $65.64, followed by the August 19 swing low at $62.19 and the 50-day SMA at $61.35.
Silver is a popular investment option for diversification and potential hedge during high-inflation periods due to its intrinsic value. It can be bought as physical silver in coins or bars or through Exchange Traded Funds (ETFs) tracking its price in international markets. Silver prices are influenced by various factors, including geopolitical events, interest rates, US Dollar movements, investment demand, mining supply, and recycling rates.
Its demand is high in industries such as electronics, solar energy, and jewelry. Silver prices often move in line with Gold, with the Gold/Silver ratio offering insights into the relative valuation of both metals.
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