Select Language

Silver Price Forecast: XAG/USD rises to near $36.50 amid Israel-Iran war

Breaking news

Silver Price Forecast: XAG/USD rises to near $36.50 amid Israel-Iran war

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.06.17 17:26
Silver Price Forecast: XAG/USD rises to near $36.50 amid Israel-Iran war

update 2025.06.17 17:26

  • Silver price gains to near $36.50 as Israel-Iran tensions have increased demand for safe-haven assets.
  • US President Trump has proposed meeting with Iran to stop war with Israel.
  • Investors expect the Fed to leave interest rates unchanged on Wednesday.

Silver price (XAG/USD) moves higher to near $36.50 during European trading hours on Tuesday. The white metal trades firmly as the aerial war between Israel and Iran has increased demand for safe-haven assets, such as Silver.

The Iranian military continues to launch airstrikes on Israel despite soughing after its Middle East peers to urge US President Trump to use his influence on Israeli Prime Minister Benjamin Netanyahu to push for an immediate ceasefire. 

Meanwhile, United States (US) President Donald Trump has asked Vice President JD Vance and Middle East envoy to offer to meet with the Iranians this week at the sidelines of the G7 meeting, The New York Times reported.

This week, the monetary policy announcement by the Federal Reserve (Fed) on Wednesday is also a key trigger that will contribute in directing the new move in the Silver price.

According to the CME FedWatch tool, the Fed is expected to hold interest rates steady in the current range of 4.25%-4.50%.

Investors will look for cues about when the Fed will start reducing interest rates. A higher-for-longer interest rate stance by the Fed bodes poorly for non-yielding assets such as Silver.

At the press time, the US Dollar Index (DXY) trades broadly sideways around 98.20.

Silver technical analysis

Silver price rally pauses after posting a fresh over-a-decade high around $36.90. However, the near-term outlook of the white metal remains bullish as the 20-day Exponential Moving Average (EMA) slopes higher, which is currently around $34.63.

The 14-day Relative Strength Index (RSI) retraces to near 60.00 after turning overbought. The odds are in favor that the RSI will resume the upside assuming that the near-term trend is bullish.

Looking up, psychological level of $40.00 will be the major resistance for the Silver price. On the downside, the October 22 high of $34.87 will act as key support for the asset.

Silver daily chart

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

 : 2025.06.17

Update

Last updated

 : 2025.06.17

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

Gold rises for second consecutive day as trade tensions intensify

Gold (XAU/USD) is ticking up slightly on Thursday, benefiting from escalating global trade tensions as recent tariff announcements from US President Trump have rekindled investors' appetite for bullion as a traditional safe-haven asset.
New
update2025.07.10 21:03

US Dollar steady amid Trump's trade escalation, cautious Fed

The US Dollar (USD) holds its footing on Thursday after a weak start to the day, as investors digest fresh tariff threats from US President Donald Trump.
New
update2025.07.10 20:59

JPY is steady on the day - Scotiabank

The Japanese Yen (JPY) is quietly consolidating its recent pullback, attempting to find support following a poor start to July, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.07.10 20:51

GBP up modestly in quiet trade - Scotiabank

The Pound Sterling (GBP) is up a modest 0.2% and outperforming most of the G10 currencies in quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.07.10 20:47

EUR/GBP wobbles around 0.8630 amid uncertainty over US-EU trade deal

The EUR/GBP pair trades in a tight range around 0.8625 during the European trading session on Thursday.
New
update2025.07.10 20:47

USD/CHF pares previous losses and returns above 0.7950 amid a stronger US Dollar

The US Dollar is featuring a moderate recovery on Thursday, paring some losses after the previous two days' reversal. The pair, however, remains trading near long-term lows, with upside attempts capped below the 0.8000 psychological level.
New
update2025.07.10 20:41

EUR consolidates in low 1.17s - Scotiabank

The Euro (EUR) is quietly consolidating in the low 1.17s and extending this week's narrow range, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.07.10 20:32

CAD is little changed on the day - Scotiabank

The Canadian Dollar (CAD) remains range-bound but has made a little progress overnight, reflecting the generally softer US Dollar (USD) undertone, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.07.10 20:26

USD slips as markets digest tariff news - Scotiabank

The US Dollar (USD) is trading a little more defensively overall this morning as markets digest the latest round of US tariff news--a hefty 50% on copper and 50% on Brazil, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
update2025.07.10 20:24

Gold Price Forecast: XAU/USD is testing trendline resistance at $3,325

Gold (XAU/USD) found buyers right below the $3,300 level on Wednesday to regain some of the ground lost over the previous days.
New
update2025.07.10 20:00

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