Select Language

Silver consolidates near 20-day SMA following Fed minutes

Breaking news

Silver consolidates near 20-day SMA following Fed minutes

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.07.10 07:54
Silver consolidates near 20-day SMA following Fed minutes

update 2025.07.10 07:54

  • Silver drops over 1% and consolidates between $36.00 and $37.00, hovering near 20-day SMA.
  • Fed minutes reveal policymakers leaning toward only one rate cut this year.
  • RSI points to bullish momentum, but $37.00 remains key breakout level.

Silver price registered losses of over 1% on Wednesday after the US Federal Reserve (Fed) unveiled its June meeting minutes, hinting that policymakers are eyeing just one interest rate cut, instead of the two priced in by investors. Although the Greenback was unchanged, the grey metal tumbled. At the time of writing, as the Asian session begins, the XAG/USD trades at $36.41, up 0.16%.

XAG/USD Price Forecast: Technical outlook

From a technical perspective, consolidation is the name of the game, with XAG/USD seesawing within $36.00 - $37.00 during the last five trading days, meandering around the 20-day Simple Moving Average (SMA) at $36.37.

Momentum is bullish, as indicated by the Relative Strength Index (RSI) at 57, which is poised to move higher. Hence, further XAG/USD upside is seen.

For a bullish continuation, XAG/USD must clear $37.00. A breach of the latter will expose the year-to-date (YTD) high of $37.31. Once hurdled, the next ceiling level would be $37.50 and $38.00.

On the flip side, if the Silver price drops below $36.00, the first support would be the 20-day SMA at $36.37, followed by the $36.00 figure. Once cleared, the next support would be June 30 cycle low of $35.42, ahead of the June 24 low of $35.29, ahead of the 50-day SMA at $34.58.

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

 : 2025.07.10

Update

Last updated

 : 2025.07.10

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

USD/CAD eases from 1.3700 Fed cuts hopes, higher Oil prices

The US Dollar retreated from two-week highs above 1.3700 on Wednesday, following the release of the FOMC m¡inutes and weighed by falling US Treasury yields.
New
update2025.07.10 19:07

Rising JGB yields keep Yen under pressure - BBH

USD/JPY eased off from this week's high above 147.00, while JPY continues to underperform against most major currencies, BBH FX analysts report.
New
update2025.07.10 19:03

USD/JPY: Scope to extend to 145.60 before stabilisation - UOB Group

Pullback in US Dollar (USD) has scope to extend to 145.60 before stabilisation is likely against Japanese Yen (JPY); strong support at 145.20 is unlikely to come under threat.
New
update2025.07.10 19:00

MXN: Inflation figures bring no relief - Commerzbank

Yesterday's Mexican inflation figures offered little relief: the seasonally adjusted core rate remained roughly consistent with the previous two months, Commerzbank's FX analyst Michael Pfister notes.
New
update2025.07.10 18:56

USD/JPY consolidates around 146.30 as investors seek current status of US-Japan trade talks

The USD/JPY pair trades sideways around 146.30 during the European trading session on Thursday. The pair consolidates as investors await fresh news regarding trade talks between the United States (US) and Japan.
New
update2025.07.10 18:54

NZD/USD: Price action indicates that further NZD weakness is likely - UOB Group

New Zealand Dollar (NZD) is expected to trade in a range against US Dollar (USD), most likely between 0.5980 and 0.6020. In the longer run, price action indicates that further NZD weakness is likely; the level to watch is 0.5950, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New
update2025.07.10 18:43

RUB: Sanctions threat returns - Commerzbank

The likelihood of new, harsh sanctions on Russia is rising again: western leaders are abandoning hopes of meaningful diplomacy and reverting back to economic pressure, which had been the consensus strategy until US President Donald Trump took over.
New
update2025.07.10 18:33

Silver price today: Silver rises, according to FXStreet data

Silver prices (XAG/USD) rose on Thursday, according to FXStreet data.
New
update2025.07.10 18:31

AUD/USD: Momentum buildup is fading - UOB Group

Further consolidation in Australian Dollar (AUD) still seems likely against US Dollar (USD), probably between 0.6505 and 0.6555.
New
update2025.07.10 18:22

USD/CHF holds gains near 0.7950, further upside seems limited

USD/CHF gains ground after two days of losses, trading around 0.7950 during the European hours on Thursday.
New
update2025.07.10 18:18

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