The silver price is closely followed by traders due to its potential for volatility, as well as the metal being a viable hedging option. It often tracks the pricing of gold due to store of value demands, but the ratio varies. Use the silver historical chart to follow the silver spot price (XAG/USD) and read the latest silver news and forecasts to inform your analysis and trade decisions. Key technical information on silver price pivot points and support and resistance levels provide additional insights to help you trade this commodity consistently. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.
- We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances.
- Where can you enter in order to have a small risk exposure but a bigger profit potential?
- From the peak on March 8th to the trough on September 1st, Silver lost more than 32%.
About Silver / U.S. Dollar
The most important charts to follow for XAG/USD is the XAU/USD chart (which represents Gold) and the US Real Yield, which is the yield you get after adjusting for inflation expectations. Both Silver and Gold are precious metals, they are generally correlated, and they are considered risk-free assets. Below you can see the chart showing this correlation.
Real Time News
Where can you enter in order to have a small risk exposure but a bigger profit potential? What is less known is that they “compete” with another risk-free asset, which is the US Treasury Bond. Unlike precious metals though the US Treasury Bond also pays an interest. The opportunity cost of holding a precious metal or a US Treasury Bond is given by the Real Yield. When real yields are expected to rise you will generally see XAG/USD going down and when real yields are expected to fall you will see XAG/USD rise.
The reverse is true when you see the Fed starting to cut interest rates which will make real yields to fall and the XAG/USD price to rise. So, if you want to make it easier to trade Silver, you want to focus on what the Federal Reserve is going to do and where US real yields will go. This will make the process simpler and give a good guide for your directional trades. The rate of silver is susceptible to conjecture and supply and demand.
You can look at Silver or Gold as pretty much the reflection of the expectations of future US real yields. Note though that the market is always forward looking, so the trends will remain intact unless the fundamentals will start to change and indicate a possible turning point in the Fed’s actions. The other important inverse correlation you should know about is the one with US real yields.
Silver Ounce
In fact, the first reaction made US real yields to fall (nominal yields down and inflation expectations up) and thus the price of Silver climbed. From the peak on March 8th to the trough on September 1st, Silver lost more than 32%. The best session to trade XAG/USD is during high liquidity times which comprises the European Session and the North American Session. That’s when you can see the most volume and action, and the spreads are tighter as a consequence of more liquidity. Moreover, since Silver is inversely correlated with US real yields, US economic reports that can influence the Federal Reserve actions going forward can have a big impact on the silver price.
For example, let’s say that the inflation report (CPI) for US comes out much higher than expected. This will make the Fed to hike interest rates more, which will translate in higher real yields in the future and thus make the silver price to fall. In the current context of aggressive monetary tightening by the Federal Reserve, the XAG/USD price is more likely to continue on its downtrend. This is because the Fed wants higher real yields to make their monetary policy as restrictive as possible to fight a historically high inflation. As long as they stay the course, inflation expectations should remain anchored and even trend down, but as nominal yields rise due to the Fed tightening, real yields of course will keep on rising. XAG/USD is basically a play on the expectation of where US real yields will go in the next 6/12 months.
Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate. You can send a variety of international currencies to multiple countries reliably, quickly, and safely, and at a rate cheaper than most banks. Silver is correlated with Gold although sometimes you can see them decouple for other factors like supply and demand. You can see in the chart below how the general correlation is clear but while Gold has made a new all time high in 2020, Silver failed to do so. Live tracking and notifications + flexible delivery and payment options. Need to know when a currency hits a specific rate?
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We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. XAG/USD pair is important for those wishing to capitalise on the actions of the Federal Reserve as the monetary policy course that the central bank will take will dictate the returns of Silver.
You can also find Silver traded with other currencies like XAG/EUR or XAG/GBP. This exchange rate tells you how many US Dollars you need to buy one troy ounce of Silver. For example, if XAG/USD is https://forexanalytics.info/ trading at 18.70, it means that you need 18.70 US Dollars to buy one troy ounce of Silver.
News & Analysis
The Xe Rate Alerts will let you know when the rate you need is triggered on your selected currency how to read the 3 main types of forex charts pairs. You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website.
So, you open the XAG/USD chart and use technical concepts like support and resistance, trendlines, Fibonacci ratios, indicators and so on to decide where to open a trade. For example, in the chart below you can see how you could use the downward trendline with a previous swing level as resistance for extra confluence. You could place a stop loss above that strong area, so your loss would be little and limited. Your target could have been much more than that. This way you can risk a little to make more than a little. XAG/USD is the exchange rate that shows the value of Silver against the US Dollar.
