Key Takeaways:
- Silver prices are being pressured by bearish RSI and moving averages above current levels.
- Breaking below $28.00 could lead to further declines towards $27.71.
- Bulls need to reclaim the 100-DMA at $29.14 to regain control over Silver prices.
XAG/USD Price Forecast
The price of silver ended Tuesday’s session with losses due to a slowdown in US manufacturing activity, prompting the Federal Reserve’s interest rate cut in September. This led to the Greenback strengthening against other currencies with XAG/USD trading at $28.05.
Technical Outlook
Currently, XAG/USD is hovering around $28.00 after reaching a two-week low of $27.71. The Relative Strength Index (RSI) and moving averages indicate a bearish momentum for silver prices. Breaking below $28.00 could trigger further declines towards $27.71 and potentially reaching the 200-DMA at $26.59. Bulls must reclaim the 100-DMA at $29.14 to shift momentum and take control of the market.
Silver FAQs
Silver is a precious metal widely traded among investors as a store of value and medium of exchange. It is a popular diversification option in investment portfolios and can serve as a hedge during periods of high inflation. Silver prices are influenced by geopolitical events, interest rates, USD strength, investment demand, and industrial usage.
Investors can purchase physical silver in coins or bars or trade it through Exchange Traded Funds (ETFs) that track its price on international markets. The metal is extensively used in industries like electronics and solar energy due to its high conductivity, impacting its pricing based on demand fluctuations. Silver prices often mirror gold movements due to their safe-haven status, with the Gold/Silver ratio offering insight into relative valuations of the metals.