Source: Investing Cube
By: Abdullah Sarwar
Date: June 12, 2023
Silver (XAG/USD) price prediction is one of the hardest nuts to crack due to extreme volatility this year. After a sharp sell-off throughout 2022, the precious metal prices rebounded in 2023 and gained 9% till April. However, the price dropped once again in May and has been in the midst of a recovery since then.
The ongoing slump in XAG/USD and the XAU/USD pairs can be attributed to a strong bounce in the DXY index from its May lows. The dollar strength index is currently trading at its two-month high, which has resulted in a decline in Silver price per ounce.
What Is Silver?
Silver belongs to a category of metals that are considered very precious due to its wide range of uses and its preference as a store of value. For thousands of years, human civilizations have used Gold and Silver as primary means to exchange and store value. As a result, Silver price has always remained tied to economic activity worldwide.
The XAG/USD keeps track of the price of Silver in terms of the United States dollar. Therefore, the pair generally shows an inverse correlation to the strength or weaknesses of the greenback.
Silver Price Latest News
As per the latest Silver news, the precious metal prices are showing extreme correlation to the policies of the US Federal Reserve. The Silver price today is trading at 24.268, which is 1% above its yearly open. The much-awaited FOMC meeting will be held in the US next week. The meeting will decide the fate of interest rates in the world’s biggest economy.
Therefore, the XAG/USD pair will most likely remain highly volatile as the previous month’s CPI report is also set to be released next week, together with the key decision on the interest rates.
Silver Chart – XAG/USD
The following XAG/USD chart reveals that after a strong sell-off last year, Silver price per ounce rebounded very strongly. The price bottomed out at around $17.50 in September and started to rise. Since then, the price of Silver has been up 38%.
Silver Price – Historical Chart
Silver Price Prediction 2023
Since my last XAG/USD analysis, the pair has successfully broken out from the downward trendline on the daily chart. The price has successfully retested the trendline after the breakout, which is a good reversal signal. If the Gold price gets a strong rebound from its current lows, then Silve price prediction 2023 may become very bullish.
The Silver spot price needs to break above the $26.8 resistance on the daily timeframe to gain a strong bullish outlook on a higher timeframe. The DXY index and the FOMC decision will keep the price in check in the coming months.
Silver Price Prediction 2025
Due to the high inflation and increased interest rates, analysts are predicting the US economy to enter a recession later in 2023. If this really happens, then the Silver and Gold price may increase as they are the preferred store of value across the world. A simple pitchfork analysis gives us a Silver price forecast for 2025 between $34-$50.
Silver Price Prediction 2030
A lot can happen in the world till 2030. Considering the current state of the global economy and the inflation across the world, I’d be surprised if Silver doesn’t make a new all-time high within the next seven years. Therefore, XAG/USD may break above its 2011 all-time high of $50. However, close attention must still be given to the changing global macroeconomic scenario.
Silver Price Prediction 2040
While the Silver price prediction 2040 is anybody’s guess, we can still consider a few different scenarios. If the US dollar remains the global reserve currency within the next two decades, Silver can comfortably trade above $50 by 2040. Technical analysis also gives a price range of $78-$138.
Where To Buy Silver?
You can buy silver on brokers like IG, TD Ameritrade, Interactive Brokers, Capital.com, Exness, etc. These brokers allow you to trade the XAG/USD pair by adding very little margin. However, you must learn risk management before taking leveraged positions on any asset.
How To Trade Silver?
There are multiple ways to gain exposure to Silver. Physically buying the metal may include a lot of hidden costs, like shipment, storage, and security. Therefore, most people trade derivatives like futures contracts, CFDs, options etc.
What is The Spot Price Of Silver?
As the name suggests, Silver spot price is the price of the bullion coins for immediate delivery. The current spot price is $24.75, but it is very volatile as it trades almost 24 hrs across the world wherever the markets are open. The biggest trading volume comes from US, UK, Japan, Hong Kong etc.
Conclusion
Investing in precious metals like Gold and Silver is always worth considering as they are a time-tested store of values with plenty of uses across the modern industry. However, the biggest factor is to evaluate your investment objectives and the time horizon. If you don’t want exponential returns and simply want to hedge against inflation, Gold and Silver could be one of the great options.
