Silver Price Hits Roadblock at $71.64

The price of Silver (XAG) has stalled as yields cap its recovery. To see a continuation of this trend, XAG/USD needs to break above the first key resistance at $71.64, which is also the 200-day Simple Moving Average (SMA). However, if Silver drops below the July 6 high of $63.28, the next support would be the 50-day SMA at $61.35.

Silver prices can move due to a wide range of factors, including geopolitical instability, fears of a deep recession, and changes in interest rates. Its price also depends on how the US Dollar (USD) behaves, as it is priced in dollars (XAG/USD). A strong USD tends to keep the price of Silver at bay, while a weaker USD can propel prices up.

Silver has historically been used as a store of value and a medium of exchange. It is widely used in industry, particularly in sectors such as electronics or solar energy, due to its high electric conductivity. A surge in demand for Silver can increase prices, while a decline tends to lower them.