Silver Price Forecast: XAG/USD holds above $51.00 as it approaches trading range support

Modest selling pressure weighs on Silver on Thursday, but further selling remains limited.
Bearish traders retain the advantage as prices consolidate below the 100-EMA on the 4-hour chart.
Only a sustained break above the $53.15-$53.20 resistance zone would invalidate the negative bias.

Selling pressure remains contained in Silver (XAG/USD), despite a modest decline during Thursday’s Asian session that takes prices back to the weekly low near $51.20-$51.15. After the previous day’s swings in both directions, the white metal is currently trading in the mid-$51.00s, with its daily loss below 0.50%.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

Repeated recent attempts to clear the 100-period Exponential Moving Average (EMA) on the 4-hour chart have failed, leaving XAG/USD firmly under bearish pressure from a technical standpoint. At $53.17, this resistance also marks the upper boundary of the week-long trading range, making it a crucial reference level for short-term traders.

A Relative Strength Index reading near 44, alongside a negative Moving Average Convergence Divergence (MACD) indicator, points to muted bullish momentum rather than an imminent reversal. To strengthen the case for further declines, however, selling would need to extend below the range support around $51.00.

Should that happen, XAG/USD could slip below the psychological $50.00 level before heading towards the next notable support at the round figure of $49.00, followed by the one-year low of roughly $48.65-$48.60 reached last Tuesday. For buyers, the first major obstacle remains the $53.15-$53.20 zone; reclaiming it would be necessary to reduce the prevailing bearish bias.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

What does the XAG/USD 4-hour chart indicate?

Silver: frequently asked questions

What attracts investors to Silver?

Investors actively trade Silver, a precious metal with a long history as both a store of value and a means of exchange. While Gold enjoys greater popularity, Silver may appeal to traders seeking portfolio diversification, intrinsic value or a possible hedge against high inflation. Exposure can take the form of physical coins and bars, or instruments such as Exchange Traded Funds that follow Silver’s price in international markets.

What drives changes in Silver prices?

Several influences can drive Silver prices. Its safe-haven appeal can lift prices during geopolitical turmoil or concerns over a severe recession, though the effect is generally smaller than for Gold. Lower interest rates also tend to support Silver because it generates no yield. Since the metal is quoted in dollars (XAG/USD), movements in the US Dollar (USD) matter too: Dollar strength typically restrains Silver prices, while a weaker Dollar is likely to push them higher. Investment demand, recycling rates and mine supply also influence pricing, with Silver far more abundant than Gold.

Why does industrial demand matter for Silver prices?

Among metals, Silver has one of the highest levels of electrical conductivity, exceeding both Copper and Gold. This makes it widely used in industry, especially electronics and solar energy. A sharp rise in demand can push prices higher, whereas weaker demand generally pulls them lower. Economic developments in the US, China and India can also cause price fluctuations. Large industrial sectors in the US and, particularly, China use Silver across a range of processes, while Indian consumer demand for Silver jewellery is another important influence on prices.

Can Gold’s price movements guide Silver prices?

Gold’s price movements generally set the direction for Silver, with gains in Gold typically accompanied by an increase in Silver because both metals have a similar safe-haven status. Their relative valuations may be assessed using the Gold/Silver ratio, which measures how many ounces of Silver equal the value of one ounce of Gold. A high reading may signal to some investors that Silver is undervalued or Gold overvalued. Conversely, a low reading could indicate that Gold is undervalued in relation to Silver.