Silver Price Forecast: XAG bulls test $70 as rally extends
Silver prices rally for the third straight day, up more than 2% and, for the week, gains over 7.40%, as a firm US Dollar is not an excuse for precious metals buyers, who are choosing flight-to-quality over haven demand due to the difficult US fiscal stance.
Silver prices have been on an upward trend for the past three days, with gains exceeding 2% and a weekly increase of 7.40%. Despite a strong US Dollar, precious metals buyers are attracted to silver as a flight-to-quality option due to challenging US fiscal conditions. XAG/USD is currently trading at $69.50, having reached a high of $70.02.
Technical analysis suggests that the uptrend remains intact, with traders watching for a breakout above $70.00. Once achieved, the focus will shift to the 200-day Simple Moving Average (SMA) at $72.05, which, if breached, could expose the psychologically significant $75.00 level. Momentum remains positive, as indicated by the Relative Strength Index (RSI) staying above 50 and nearing overbought levels.
The first support for XAG/USD is the 100-day SMA at $68.47, followed by the August 20 low of $65.64, the August 19 swing low of $62.19, and the 50-day SMA at $61.35. Silver is a widely traded precious metal used as a store of value and a hedge during high-inflation periods. It can be bought physically or traded through Exchange Traded Funds.
Silver prices are influenced by various factors, including geopolitical instability, economic conditions, and industrial demand. The Gold/Silver ratio can also provide insights into the relative valuation of the two metals.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
