Silver Price Forecasts: XAG/USD Fails to Find Acceptance Above $79.00

Why It Matters

The stalled advance signals pressure on safe‑haven assets ahead of key inflation data, influencing portfolio allocations and industrial demand outlooks. A weaker silver price could reshape hedging strategies for investors monitoring Fed policy and dollar strength.

Key Takeaways

• Silver trades at $77.35, below $79 resistance.
• 50‑period SMA at $81 reinforces bearish bias.
• CPI data may trigger Fed rate‑cut expectations.
• Strong USD limits silver upside.
• Industrial demand remains a price driver.

Pulse Analysis

Silver’s recent price action reflects a broader tug‑of‑war between risk‑off sentiment and a resilient US dollar. As the greenback climbs, dollar‑denominated commodities like silver face headwinds, limiting speculative rallies. Investors are also factoring in the upcoming CPI release, which historically acts as a catalyst for precious‑metal volatility. When inflation numbers surprise to the upside, the market often anticipates tighter monetary policy, further pressuring silver’s appeal as a hedge.

From a technical standpoint, XAG/USD remains entrenched below its 50‑period simple moving average, now hovering around $81. The MACD stays in negative territory while the RSI hovers near 40, indicating muted buying momentum. Support levels near $74 and $64 provide a floor, but any breach could accelerate the downtrend toward the weekly low. Traders watching the $79 resistance should monitor volume spikes for potential breakout signals, though the prevailing bearish bias suggests caution.

Looking ahead, the interplay between inflation data, Federal Reserve rate expectations, and industrial demand will shape silver’s trajectory. A softer CPI reading could revive hopes of an earlier rate cut, bolstering safe‑haven demand and possibly lifting prices toward the $86‑plus weekly high. Conversely, stronger inflation may keep rates higher for longer, reinforcing dollar strength and suppressing silver. Meanwhile, the metal’s industrial applications in electronics and solar panels add a fundamental demand layer that can offset macro pressures, making it a nuanced asset for diversified portfolios.

Silver Price Forecasts: XAG/USD fails to find acceptance above $79.00

02/13/2026 12:34:44 GMT · By Guillermo Alcala · FXStreet

Silver (XAG/USD) shows minor gains on Friday, trading at $77.35 at the time of writing after bouncing from lows near $74.00 on Thursday. The white metal, however, remains on track for its third consecutive weekly decline, with bulls lacking follow‑through above the $79.00 area.

Precious metals are trading within previous ranges in a calm session on Friday. The risk‑off market is providing some support, but the firmer US Dollar Index keeps upside attempts limited. Investors are bidding their time ahead of the release of January’s Consumer Prices Index (CPI) data, which might shed more light on the timing of the next Federal Reserve interest‑rate cut.

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Technical Analysis

XAG/USD is consolidating, halfway through February’s trading range, with price action hovering below the downward‑trending 50‑period SMA, which highlights the bearish bias. Four‑hour indicators are moderately negative. The Moving Average Convergence Divergence (MACD) remains below zero, and the Relative Strength Index (RSI) stands around 40, indicating subdued demand.

Upside attempts have been capped at the $79.00 area earlier on Friday. Further up, the mentioned 50‑SMA, now at $81.00, and the weekly highs, around $86.30, are likely to test potential bullish reactions. Supports are at Thursday’s low, in the $74.00 area, and the February 6 low, near $64.00.

(The technical analysis of this story was written with the help of an AI tool.)

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Silver FAQs

Why do people invest in Silver?

Silver is a precious metal highly traded among investors. Historically it has been used as a store of value and a medium of exchange. Although less popular than gold, traders may turn to silver to diversify their portfolios, for its intrinsic value, or as a potential hedge during high‑inflation periods. Investors can buy physical silver (coins or bars) or trade it through vehicles such as Exchange‑Traded Funds that 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 push silver higher because of its safe‑haven status, though to a lesser extent than gold. As a yield‑less asset, silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar behaves, since the asset is priced in dollars (XAG/USD). A strong dollar tends to keep the price of silver down, whereas a weaker dollar is likely to propel prices up. Other influences include investment demand, mining supply (silver is more abundant than gold), and recycling rates.

How does industrial demand affect Silver prices?

Silver is widely used in industry, particularly in electronics and solar energy, because it has one of the highest electrical conductivities of all metals—higher than copper and gold. A surge in industrial demand can increase prices, while a decline tends to lower them. Economic dynamics in the US, China, and India also contribute to price swings: the US and especially China have large industrial sectors that use silver, while Indian consumers’ demand for silver jewellery also plays a key role.

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 both are viewed as safe‑haven assets. The Gold/Silver ratio, which shows the number of ounces of silver needed to equal the value of one ounce of gold, can help determine the relative valuation between the two metals. A high ratio may indicate that silver is undervalued (or gold overvalued), while a low ratio might suggest the opposite.

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Author

Guillermo Alcala – FXStreet

Graduated in Communication Sciences at the Universidad del País Vasco and Universiteit van Amsterdam, Guillermo has been working as a financial news editor and copywriter in diverse Forex‑related firms, including FXStreet and Kantox.