XAGUSD Analysis
XAGUSD is falling from the higher-high area on the daily timeframe chart, and in the 4-hour timeframe, it has broken the higher-low area of the minor ascending channel.
XAGUSD Update
XAGUSD is consolidating at the higher high area, which leads to the SL price. However, XAGUSD still has a chance to fall from the higher high area of the Ascending channel.
Reason: Due to the release of more economic news mentioned below, the market is not making technical movements at this time.
Why Silver is Stronger
Higher volatility and leverage vs. gold – silver historically outperforms gold in bull markets with larger percentage gains.
Strong industrial demand – over 50% of silver use comes from solar, electronics, and EVs, linking it to global growth trends.
Tighter supply dynamics – limited new mine production and reduced inventories create supply pressure.
Dual role as safe haven and industrial metal – silver benefits both from risk-hedging demand like gold and from industrial expansion.
Why USD is Weaker
Weak U.S. economic data – slowing growth in jobs, spending, and manufacturing reduces dollar demand.
Federal Reserve policy shift – expectations of rate cuts or a pause lower yields, making USD less attractive.
Large U.S. fiscal and trade deficits – persistent borrowing and imbalances weaken long-term dollar confidence.
Capital flow diversification – investors move into emerging markets and China, supported by better growth prospects.
Please note In the forex market, technical works 80% of the time, and fundamental works 20% of the time. This time fundamental wins. It’s crucial to remain patient and wait for the next good opportunity signal.
We always want you to trade safe under all market conditions.
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