Silver Price Forecast: XAG/USD breaks $55 as bears target $50

Silver (XAG/USD) plummeted more than 5% on Thursday after investors rushed to purchase US Treasuries, seeking higher yields. Despite this, the white metal struggled to recover due to rising energy prices and a strengthening US Dollar. As of the last update, XAG/USD was trading at $54.85, having reached an eleven-month low of $54.53.

The downtrend resumed following the breach of the October 15 daily low of $55.38, with the next key support level at the psychologically significant $55.00 mark. The Relative Strength Index (RSI) is bearish and nearing oversold conditions, suggesting more downside may be on the horizon. If XAG/USD surpasses $54.50, the next target is $50.00.

Below, the next demand area is the November 21, 2025, swing low of $48.64, before challenging the October 28, 2025, swing low of $45.56. For a bullish reversal, Silver must break above $55.00, followed by the day's high of $58.02 and the $60.00 milestone. Silver is a popular investment among traders, often used as a hedge during high-inflation periods or for its intrinsic value.

It can be purchased as physical metal, through ETFs, or other investment vehicles. Silver's price movements are influenced by various factors, including geopolitical events, interest rates, the US Dollar's strength, investment demand, mining supply, and recycling rates. As a highly conductive metal, Silver's demand in industries like electronics and solar energy can impact its price.

The Gold/Silver ratio may also provide insights into the relative valuation of the two metals. Analysts and traders closely monitor Silver's performance in response to broader economic developments, such as the US, Chinese, and Indian economies, as well as US, Middle East, and global macro events. The recent decline in US bond yields and hawkish expectations from the Bank of Japan further weigh on the US Dollar, supporting the Japanese Yen and adding downward pressure on the currency pair.