The post XAG/USD retreats as dollar strength weighs appeared on BitcoinEthereumNews.com. Silver price retreats during the North American session nearly 1%, afterThe post XAG/USD retreats as dollar strength weighs appeared on BitcoinEthereumNews.com. Silver price retreats during the North American session nearly 1%, after

XAG/USD retreats as dollar strength weighs

Silver price retreats during the North American session nearly 1%, after reaching a daily high of $78.20. Overall US Dollar strength amid thin volume trading as US financial markets remained closed, keeping the white metal within familiar levels, yet down below the 50-day Simple Moving Average (SMA) at $79.45.

XAG/USD Price Forecast: Technical outlook

Following the formation of a ‘bearish engulfing’ candle pattern that drove Siver prices from around $83.70 towards the $75.00 area, XAG/USD continued to exchange hands within the $75.00-$80.00 range during the last two trading sessions.

Momentum as measured by the Relative Strength Index (RSI) shows that sellers are in control, as the index sits below its neutral level.

However, sellers had failed to clear decisively the $75.00 milestone. If done, it could exacerbate a retracement towards the $70.00 figure, followed by the February 6 swing low of $64.10.

Conversely, for a bullish resumption, buyers are struggling to surpass $80.00. A breach of the latter will expose the February 12 high at $84.94, followed by the February 11 peak of $86.30 ahead of the 20-day Simple Moving Average (SMA) at $89.99.

XAG/USD Price Chart — Daily

XAG/USD — 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.

Source: https://www.fxstreet.com/news/silver-price-forecast-xag-usd-slips-below-50-day-sma-on-strong-us-dollar-202602162012

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

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