Select Language

Silver Price Forecast: XAG/USD shines above $33.00 as US inflation dips

Breaking news

Silver Price Forecast: XAG/USD shines above $33.00 as US inflation dips

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.03.13 06:35
Silver Price Forecast: XAG/USD shines above $33.00 as US inflation dips

update 2025.03.13 06:35

  • XAG/USD surges to two-week highs amid softer inflation data and persistent tariff worries
  • US CPI misses forecasts, fueling speculation of Fed easing and boosting Silver's allure despite rising yields.
  • Technical indicators remain bullish; RSI signals further upside as Silver buyers aim at February's peak of $33.39.

Silver price rallied to three-week highs as it cleared the $33.00 handle on Wednesday, posting gains of over 0.90%, unfazed by a jump in US Treasury bond yields and a strong US Dollar. At the time of writing, XAG/USD trades at $33.21 after bouncing off daily lows of $32.70.

A softer-than-expected US inflation report revealed that the Consumer Price Index (CPI) dipped in headline and core measures. Although this spurred speculation that the Federal Reserve (Fed) might lower borrowing costs, it's just one month of good data, which, according to Fed Chair Jerome Powell, is not enough to stir the boat.

Meanwhile, traders continue to digest US President Donald Trump's tariff rhetoric. Trump threatens further tariffs as the EU and Canada retaliate.

XAG/USD Price Forecast: Technical outlook

Silver's price remains upward-biased after bottoming near $32.00 for the last four trading days. Since then, XAG/USD has been up more than 2% in the week, and with momentum being a tailwind for the grey metal, further gains are seen.

The Relative Strength Index (RSI) is bullish, signaling buyers are in charge.

The first resistance would be the February 14 daily high at $33.39. A breach of that level will expose the $34.00 figure. Should sellers step in, they must clear $33.00. Once surpassed, prices could fall to March 11 swing low of $31.81.

XAG/USD Price Chart - Daily

Silver FAQs

Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.

Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply - Silver is much more abundant than Gold - and recycling rates can also affect prices.

Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals - more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers' demand for the precious metal for jewellery also plays a key role in setting prices.

Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.

 


Date

Created

 : 2025.03.13

Update

Last updated

 : 2025.03.13

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

EUR/USD weakens below 1.0900 on trade tension

The EUR/USD pair loses ground to around 1.0880 during the Asian trading hours on Thursday.
New
update2025.03.13 13:47

Gold price eyes record high amid rising trade tensions, Fed rate cut bets

Gold price (XAU/USD) trades with a positive bias for the third consecutive day and climbs to over a two-week high, around the $2,942-2,943 region during the Asian session on Thursday.
New
update2025.03.13 13:41

EUR/JPY falls to near 161.00 as global trade war weigh on market sentiment

EUR/JPY declines after two consecutive sessions of gains, trading around 161.10 during Asian hours on Thursday.
New
update2025.03.13 13:38

India Gold price today: Gold rises, according to FXStreet data

Gold prices rose in India on Thursday, according to data compiled by FXStreet.
New
update2025.03.13 13:35

GBP/USD maintains position above 1.2950 near four-month highs

GBP/USD attempts to extend its gains for the third successive day, trading around 1.2960 during the Asian session on Thursday.
New
update2025.03.13 12:48

BoJ's Ueda: Underlying inflation is still somewhat below 2%

Bank of Japan (BoJ) Governor Kazuo Ueda said on Thursday that the "underlying inflation is still somewhat below 2%." Additional takeaways Expect underlying inflation to gradually accelerate as economy continues to recover.
New
update2025.03.13 12:28

Silver Price Forecast: XAG/USD rises to near five-month highs, $33.50 level

Silver price (XAG/USD) continues its upward momentum for the third consecutive session, hovering around $33.30 per troy ounce during Asian trading hours on Thursday.
New
update2025.03.13 11:54

Japanese Yen edges higher against USD, drags USD/JPY closer to 148.00 mark

The Japanese Yen (JPY) edged higher against its American counterpart during the Asian session on Thursday and moves away from the weekly low touched the previous day.
New
update2025.03.13 11:40

USD/INR recovers ahead of US PPI release

The Indian Rupee (INR) trades with mild losses on Thursday.
New
update2025.03.13 11:36

Japan's Kato: Still not in a state where we can permanently call end to deflation

Japanese Finance Minister Shunichi Kato said on Thursday that "Japan is still not in a state where we can permanently call an end to deflation." Additional quotes Japan's economy in state of experiencing supply shortage, rather than lack of demand.
New
update2025.03.13 11:27

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel