Silver Price Analysis: Surge of 31.20% seen; Expects further gains

Silver reached $30.66, its eight-day peak price, after surpassing $30.00 resistance and surpassing $30.84 (June 21 high), $32.51 (year to date high), with support points found around $29.48 (July 3 low), $29.00, 28.57 June 26 low price as well as 27.589 April 15 Low Prices (for stability purposes only).

Silver prices surged past their previous June 20 high of $30.78 on Friday to surpass and extend past $31.00 following an unexpectedly weak US jobs report that raised expectations about potential Fed interest rate cuts, sending the XAG/USD rising 2.65% higher at $31.20 trading at the close.

Analysis of XAG/USD Price Trend: Technical Outlook

At present, silver remains bullishly biased, having passed through and cleared its “double bottom” neckline at time of writing, validating this chart pattern. Buyer momentum can be seen through Relative Strength Index (RSI) readings below the price action which point up, reflecting accumulation by buyers.

Assuming a bullish continuation, initial resistance for XAG/USD would come at the $31.50 psychological mark and $32.00 level; subsequently, its year-to-date (YTD) high would come into view of $32.51.

On the downside, should XAG/USD fall below $31.00, its first support would come in form of July 5’s low of $30.18 before reaching $30.00. Any additional losses below that point toward further declines – likely with July 3 lows of $29.48 up next and eventually $29.00 being reached first.

Daily Chart of the XAG/USD Exchange Rate Movement.

Silver FAQs Silver is an extremely sought-after precious metal among investors and has long served as both an asset store of value and medium of exchange. While less popular than Gold, traders may look towards Silver as an addition to their investment portfolio in times of high inflation or diversifying during high growth periods. Buyers may invest directly or through vehicles like Exchange Traded Funds which track its price across international markets.

Silver prices can fluctuate due to multiple factors. Geopolitical instability or fears of deep recession may make its price increase due to its safe-haven status; as an interest-bearing asset (XAG/USD), Silver’s movement often depends on how the US Dollar acts; its strength or weakness tends to determine where prices settle – so, for instance, strong US Dollar tends to keep Silver at bay while weak Dollar can propel prices skyward. Other influences could also play a part. Furthermore, other variables including investment demand as well as mining supply – Silver has far greater abundance – recycling rates all have significant influences upon Silver’s price fluctuations than Gold does.

Silver has long been used in electronics and solar energy sectors due to its excellent electrical conductivity – surpassing both Copper and Gold! When demand surges, prices may increase while when demand declines they usually decline; price changes can also depend on dynamics between US, Chinese and Indian economies; in China in particular large industrial sectors make heavy use of Silver for various processes while in India consumers’ desire for jewellery uses play a major factor in setting prices.

Silver prices tend to track Gold closely; when prices increase for both metals, Silver tends to follow suit as both serve as safe-haven assets. The Gold/Silver ratio – showing how many ounces of Silver it would take equal an ounce of Gold – provides insight into their relative valuation; investors might view a high ratio as evidence that either Metal A or B has been underpriced relative to one another while a low ratio might suggest that one Metal has been significantly underestimated relative to another Metal.