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 trading at 18.70, it means that you need 18.70 US Dollars to buy one troy ounce of Silver.
News & Analysis
Silver supply is predominantly derived from mining operations, central bank sales, and precious ore recycling, so supply fluctuations have a significant impact on XAG/USD prices. Silver, unlike some other commodities, can be utilised in a variety of industrial applications and may not be entirely recoverable through recycling processes. Consequently, the discovery of new silver deposits and fluctuations in mining output can impact silver prices. 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. The XAG forex symbol allows traders to speculate on the price of silver in the forex market.
XAG to USD Chart
If price is near its low, traders may look to go long if they think the low will hold as a support level. If the instrument continues to fall though and creates a new low, traders may look to go short since the previous low failed to hold as a support level. The Federal Reserve’s (Fed) preferred inflation gauge will significantly influence speculation for Fed rate cuts in September. Currently, financial markets expect that the Fed will start reducing interest rates from the last quarter of the year. These percentages show how much the exchange rate has fluctuated over the last 30 and 90-day periods. These are the lowest points the exchange rate has been at in the last 30 and 90-day periods.
EUR/USD holds above 1.0800 ahead of EU inflation data
Most retail brokers offer CFD trading, although you can also trade XAG/USD via other derivatives like futures or options that trade on exchanges but are more expensive than CFDs. Moreover, https://www.broker-review.org/ you can invest in Silver via ETFs (Exchange Traded Fund) like for example the iShares Silver Trust (SLV). XAG/USD is the exchange rate that shows the value of Silver against the US Dollar.
- Its supply is predominantly derived from global mining operations.
- 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.
- The outlook of the white metal is uncertain as the 20- and 50-period Exponential Moving Averages (EMAs) have delivered a bearish crossover near $31.75.
- It often tracks the pricing of gold due to store of value demands, but the ratio varies.
- During periods of economic turmoil, geopolitical tensions, or currency devaluation, silver tends to maintain or even increase in value.
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Once the market will see the Fed to cut interest rates to spur growth, XAG/USD should begin a new uptrend. Eurostat will release crucial European inflation data on Friday. The European Central Bank remains cautious regarding rate cuts. During periods of economic turmoil, geopolitical tensions, or currency devaluation, silver tends to maintain or even increase in value. Consequently, it may be an attractive addition to portfolios seeking stability and growth potential. Our currency rankings show that the most popular US Dollar exchange rate is the USD to USD rate.
Silver technical analysis
Its supply is predominantly derived from global mining operations. Always choose a good, reputable, and regulated broker to avoid unnecessary problems. When you open a trading account with a broker, you will have to supply your KYC documents and, once approved, deposit money to be able to trade. Finally, you can use the broker trading platform to execute your trades. Most retail brokers let you also trade on MetaTrader 4 or MetaTrader 5, which are two of the most famous and popular trading platforms among retail traders.
Traders should use risk management strategies, such as setting stop-loss orders, to limit potential losses. Additionally, XAG forex trading is subject to market volatility and liquidity risks, meaning that prices can fluctuate rapidly and trading may be more difficult during periods of low liquidity. The price of silver can also be influenced by market volatility. In contrast to the larger and more liquid gold market, the silver market is smaller, with fewer participants and lower trading volumes. Consequently, fluctuations in supply and demand can have a disproportionately large impact on silver prices. In addition, the opportunity cost of holding silver is affected by alternative investments that yield interest or dividends, such as bonds or equities.
When the Fed begins a tightening cycle raising interest rates, real yields rise and XAG/USD falls. When the Fed begins a cutting cycle slashing interest rate, real yields fall, and XAG/USD rises. Below you can see the chart showing the inverse relationship between US real yields and silver price. XAG forex traders use a variety of technical and fundamental analysis tools to make trading decisions. Technical analysis involves studying price charts and using indicators to identify trends and potential trade opportunities. Fundamental analysis involves analyzing economic data releases, news events, and other factors that can impact the price of silver.
Separately, the outcome of a slower US growth rate in the first quarter of the year in the second estimate against preliminary readings has also weighed on the US Dollar. The second estimate for the Q1 real GDP shows that the economy expanded at a slower pace of 1.3% from 1.6% growth recorded in advance estimates. Chainlink price has flashed multiple sell signals after its recent climb, hinting at a short-term correction.
XAG forex trading is influenced by a variety of factors, including economic data releases, geopolitical events, and market sentiment. Economic data releases, such as manufacturing or employment data, can impact the demand for silver in the industrial sector, and ultimately affect the price of silver. Geopolitical events, such as trade disputes or political tensions, can also impact the price of silver by affecting supply or demand. Market sentiment, or the overall mood of traders, can also impact the price of silver by driving buying or selling pressure. When Russia invaded Ukraine the first reaction in the markets was a flight to safety. The market realised that inflation was already really high, and this war would have increased inflationary pressures on food and energy, making the market to expect even more rate hikes on the horizon.
Being a safe-haven asset, silver attracts investors during times of global instability, trade tensions, and economic turmoil. In times of rising inflation and falling interest rates, its tangibility and potential for preserving value make it particularly appealing. In contrast, a slowdown in Gross Domestic Product (GDP) growth may dampen industrial demand for silver, potentially leading to price declines. The other important inverse correlation you should know about is the one with US real yields.
Precious metals “compete” with another risk-free asset, the US Treasury Bond. But while Silver doesn’t pay an interest to own (it actually has costs to store it), the US Treasury Bond pays an interest called yield. So, the opportunity cost of holding one of the two is given by the real yield. Forex, or foreign exchange, is the largest financial market in the world, where currencies are traded 24 hours a day, five days a week. The forex market has a daily turnover of over $5 trillion, making it a highly liquid market with opportunities for traders to profit from currency fluctuations. However, the forex market also offers opportunities to trade commodities like silver, which is represented by the XAG forex symbol.
Create a chart for any currency pair in the world to see their currency history. These currency charts use live mid-market rates, are easy to use, and are very reliable. The XAG/USD currency pair represents the exchange rate between silver’s ticker symbol (XAG) and the United States dollar (USD), or the number of USD required to thinkmarkets review purchase one troy ounce of silver. On the periodic table, the letter «X» represents «index,» whereas «AG» is the symbol for silver. Silver is a highly valued precious metal due to its lustre and diverse applications. Silver has been used for jewellery, currency, silverware, and numerous industrial purposes throughout history.
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. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.