On Friday, silver (XAG/USD) prices increased by nearly 2%, but are expected to finish the week down close to 10%. This marks the first time the metal has dipped below the $60.00 mark since its rally began in early December 2025. Currently, the XAG/USD pair trades at $59.00 after reaching a low of $55.70.
XAG/USD Price Prediction: Technical Outlook
The white metal has seen a significant downturn, falling almost 22% so far in June. After peaking at $121.66 per ounce in January, interest in silver has waned for various reasons.
With leading central banks either maintaining interest rates or planning to increase them, there’s a persistent downward pressure on silver, even as it sees daily rises.
The Relative Strength Index (RSI) suggests sellers hold the upper hand, even with the index climbing back above 30 after a few days in the overbought territory.
For a bullish turnaround, buyers would need to push past the $60.00 level and then clear the 200-day simple moving average (SMA) of $69.56.
XAG/USD Price Chart – Daily
Silver FAQ
Silver is a valuable metal often sought after by investors. Historically, it has served as a store of value and a means of exchange. Although it doesn’t have the same popularity as gold, many traders turn to silver to diversify their investment portfolios, either for its intrinsic worth or as a hedge during inflationary times. Investors can acquire physical silver, such as coins or bars, or trade it through exchange-traded funds that track its market prices.
The price of silver varies based on several factors. Geopolitical tensions or a potential recession could elevate silver’s price due to its reputation as a safe-haven asset—albeit less so than gold. As a non-yielding asset, silver tends to gain value when interest rates fall. Its pricing is also influenced by the value of the US dollar; a strong dollar usually suppresses silver prices, while a weaker dollar can boost them. Additionally, elements like investment demand, supply levels, and recycling rates impact silver prices.
Industrially, silver is extensively used, particularly in electronics and solar energy due to its unmatched electrical conductivity. When demand surges, prices usually rise, but they can drop when demand is low. Economic factors in countries like the United States, China, and India can also influence pricing—especially since China has a significant industrial sector that utilizes silver. In India, consumer interest in silver jewelry plays a crucial role in its pricing.
Traditionally, silver’s price tends to reflect movements in gold. When gold prices increase, silver typically follows because of its similar safe-haven status. The gold/silver ratio indicates how many ounces of silver equal the value of one ounce of gold, helping to assess the relative values of the two metals. Investors might see a high ratio as a sign that silver is undervalued or gold is overvalued, while a low ratio might suggest the opposite.
