Silver Price Prediction: Silver Falls Below Key Support Today

Summary:
• Silver prices (XAG/USD) were trading at $28.57. Silver has fluctuated between a low of $28.23 and a high of $28.57

Silver is a precious metal that is commonly traded among investors. Investors can buy physical Silver or trade it through exchange-traded funds, which monitor its price in international markets.

Silver Price Prediction

Today’s silver price was trading below the critical $28.86 support level, which it crossed below yesterday, extending its three-day losing streak. The commodity has pulled back over the past five days after hitting the critical resistance level at $30 on Tuesday, August 27, 2024.

Silver’s pullback can be attributed to the lack of market demand amid an increase in investor risk sentiment as investors bought riskier assets such as stocks instead of safe-haven metals. The silver price rallied higher after bottoming on Thursday, August 8, 2024, amid an influx of buyers. The rally lasted up to last Tuesday before the recent pullback.

The Silver And Gold Relationship

Silver prices have historically been affected by Gold. This means that when gold prices rise, silver typically follows suit. The Gold/Silver ratio shows the number of Silver ounces needed to equal the value of one Gold ounce. Investors consider a high ratio to indicate that Silver or Gold are overvalued. Conversely, a low ratio suggests that Gold is undervalued compared to Silver.