Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Silver Price Forecast: XAG/USD Stalls in Anticipation of Stimulus Outcome

Silver Price Forecast: XAG/USD Stalls in Anticipation of Stimulus Outcome

What's on this page

Silver Outlook:

Visit the DailyFX Educational Center to discover why news events are Key to Forex Fundamental Analysis

Price Action Stalls as Stimulus Talks Continue

Renewed hopes of additional US stimulus combined with economic uncertainty increased the demand for Gold, Silver and other safe-haven assets temporarily, before retracing back into its rangebound state.


From a long-term perspective, the monthly chart below highlights how the Fibonacci levels from the historical move (taken from September 2008 low to March 2011 high) have formed support and resistance for the precious metal, forming areas of confluency for price action since recovering from March 2020 lows, which marks the low of the second Fibonacci (purple), with the high marked at 2983.9 (7 August 2020 high).

Silver Monthly Chart

Silver Monthly Chart

Chart prepared by Tammy Da Costa, IG

CCI Approaches Overbought Territory

For those focused on short-term moves, the Commodity Channel Index (CCI), which measures the price of an asset in comparison to its average over a certain period of time, is approaching 100, a possible indication that the price of silver may be entering into overbought territory. Meanwhile, prices are trading just above the 50-period Moving Average (MA).

Starts in:
Live now:
Dec 22
( 13:12 GMT )
Join James Stanley’s Price Action Webinar
Short-term Trading Strategy Webinar
Register for Webinar
Join Now
Webinar Has Ended

Silver 4 Hour Chart

Silver 4 Hour Chart

Chart prepared by Tammy Da Costa, IG

Silver Strategy Moving Forward

For now, the 61.8% Fibonacci retracement of the historical move continues to hold as support at 2427, with a break below possibly bringing the 38.2% retracement level of the short-term move into play at 2276.1.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Tammy Da Costa
How news can impact your trades?
Get My Guide

On the opposite end, the 23.6% retracement level of the short-term move holds as resistance at 2546, with the next level of resistance holding at the psychological level of 2600.

--- Written by Tammy Da Costa, Market Writer for

Contact and follow Tammy on Twitter: @Tams707

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.