Silver Price Forecast: XAG slides below 200-day SMA, bears target $61

[XAU/USD](https://www.fxstreet.com/rates-charts/xauusd) [EUR/USD](https://www.fxstreet.com/currencies/eurusd) [Trade War](https://www.fxstreet.com/macroeconomics/events/trade-war) [GBP/USD](https://www.fxstreet.com/currencies/gbpusd) [Silver](https://www.fxstreet.com/rates-charts/xagusd) [WhatsApp](https://whatsapp.com/channel/0029VaDGsU90lwgjJ5Sh8Y45)[Telegram](https://t.me/forexnews)[LinkedIn](https://www.linkedin.com/company/fxstreet)[X (Twitter)](https://x.com/FXStreetNews)[Facebook](http://www.facebook.com/FXstreet)[Instagram](https://www.instagram.com/fx_street)[YouTube](https://www.youtube.com/user/fxstreetcom/)[TikTok](https://www.tiktok.com/@fxstreet.com) [Newsletter](https://www.fxstreet.com/subscriptions) [FXStreet](https://www.fxstreet.com/ "FXStreet")[Visit Pepperstone - Sponsor (opens in new window)](http://pubads.g.doubleclick.net/gampad/clk?id=6731001804&iu=/7138/FXS30) [Upgrade](https://www.fxstreet.com/info/premium?utm_source=paywall&utm_medium=internal&utm_campaign=paywall-no-premium&utm_content=noAMP) [Login](https://www.fxstreet.com/account/login?uriToRedirect=https%3A%2F%2Fnull%2Fnews%2Fsilver-price-forecast-xag-slides-below-200-day-sma-bears-target-61-202606192012&step=login-options) Silver (XAG/USD) price tumbles for the third consecutive trading day, down over 3.32% on Friday, courtesy of broad US Dollar (USD) strength and rising US Treasury yields, which have aimed higher since Wednesday amid the [Fed](https://www.fxstreet.com/macroeconomics/central-banks/fed)'s hawkish tilt. ## XAG/USD Price Forecast: Technical Outlook [Silver](https://www.fxstreet.com/rates-charts/xagusd) price continued to trend lower after clearing the 200-day Simple Moving Average (SMA) at $69.11, which was tested three times [this week](https://www.fxstreet.com/economic-calendar), but buyers surrendered, and sellers are gaining the upper hand, pushing the white metal below $65.00. Momentum shows that bears have continued to gain traction, as indicated by the Relative Strength Index (RSI), though it’s worth noting that sellers seem to be losing some steam. For a bearish continuation, XAG/USD needs to clear the March 23 daily low of $61.06. Below this, the next support would be the $60.00 milestone, followed by November 13, 2025, daily high-turned-support at $54.39, ahead of the $50.00 mark. Conversely, for XAG/USD to resume its uptrend, buyers must conquer the 200-day SMA at $69.11. Above this level, the next area of interest would be the $70.00 figure, followed by the 50-day SMA at $74.88. ## XAG/USD Price Chart – Daily  Silver daily chart ## Silver FAQs ### Why do people invest in Silver? 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. ### Which factors influence Silver prices? 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. ### How does industrial demand affect Silver 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. ### How do Silver prices react to Gold’s moves? 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. Author  [Christian Borjon Valencia](https://www.fxstreet.com/author/christian-borjon-valencia) FXStreet Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets. More fromChristian Borjon Valencia Share: [RSS Feed](https://www.fxstreet.com/news/feed) ### Legal Text #### Editor's Picks #### [GBP/USD bounces off lows, back above 1.3200](https://www.fxstreet.com/currencies/gbpusd) After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now. #### [EUR/USD looks consolidative around 1.1460](https://www.fxstreet.com/currencies/eurusd) EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained. #### [Gold slips back to six-day lows, targets $4,100](https://www.fxstreet.com/markets/commodities/metals/gold) Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations. #### [Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation](https://www.fxstreet.com/news/breaking-iran-closes-the-strait-of-hormuz-amid-ceasefire-deal-violation-202606201419) Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized." #### [The Iran war didn't break the US economy, but what happens next?](https://www.fxstreet.com/analysis/the-iran-war-didnt-break-the-us-economy-but-what-happens-next-202606191356) Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock. #### [Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose](https://www.fxstreet.co