Silver Price Forecast: XAG pullback tests 100-day SMA

On Monday, the price of silver experienced a pullback, testing the 100-day Simple Moving Average (SMA) at $68.42. Despite this, silver's uptrend remained intact. The Relative Strength Index (RSI) indicated bullish sentiment, although buyers experienced a short-term loss of momentum. Analysts noted that silver's market structure of higher highs and higher lows suggests potential for further upside.

However, for investors to set their sights on the 200-day SMA at $72.13, silver must first reclaim the $70.00 milestone. If this level is not achieved, the next resistance would be the May 25 cycle high at $78.83. On the downside, the initial support for silver is at the 100-day SMA, with further declines potentially leading to the August 20 low of $65.64, the August 19 swing low of $62.19, and the 50-day SMA at $61.34.

Silver is a highly traded precious metal, often used as a store of value and hedge against inflation. Its price is influenced by various factors, including geopolitical events, interest rates, the US Dollar's performance, investment demand, mining supply, and recycling rates. Silver's industrial applications, particularly in electronics and solar energy, also impact its pricing.

The Gold/Silver ratio can provide insight into the relative valuation of both metals, with a high ratio potentially indicating undervaluation of silver or overvaluation of gold. Analysts monitor silver prices closely, comparing them to gold movements, as they are often seen as safe-haven assets.