Forex News
Silver prices (XAG/USD) fell on Monday, according to FXStreet data. Silver trades at $75.07 per troy ounce, down 4.29% from the $78.44 it cost on Friday.
Silver prices have increased by 159.84% since the beginning of the year.
Unit measure | Silver Price Today in USD |
|---|---|
Troy Ounce | 75.07 |
1 Gram | 2.41 |
The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, stood at 59.48 on Monday, up from 57.77 on Friday.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
(An automation tool was used in creating this post.)
- Silver dives from all-time highs near $86.00 to levels below $75.00.
- Higher hopes of a peace deal in Ukraine are weighing on precious metals.
- Growing tensions between China and Taidan might limit Silver's reversal.
Silver (XAG/USD) has lost more than $10 since hitting a fresh record high near $86.00 on Monday’s early trading. The precious metal has retreated to levels in the $74.00 area at the time of writing, weighed by comments by US President Trump about the chances of a peace deal in Ukraine.
Trump appeared at a news conference, together with Ukrainian President Volodymyr Zelenskyy, late Sunday, and said that he thinks that peace in Ukraine is “a lot closer,” although he acknowledged that thorny issues remain.
Meanwhile, China has announced “major” military exercises around Taiwan, and Taipei affirmed that several Chinese vessels have been seen near Taiwan’s territorial waters. A further escalation of tensions in an already sensitive area, which might limit the current reversal of precious metals.
Technical Analysis: Silver corrects from overbought levels
In the 4-hour chart, XAG/USD trades at $74.92, approaching the 21-period Simple Moving Average (SMA), at the $74.00 area, which is providing support and highlights the broader bullish bias. The Relative Strength Index (RSI) stands at 54.79, near neutral levels, after unwinding from overbought territory, while the Moving Average Convergence Divergence (MACD) turns lower toward the zero line after recent highs, suggesting waning upside momentum.
Below the mentioned 21-day SMA, the next support levels are seen at $72.60, where the pair was capped on December 24, and the area between $69.60 and $70.20, where the 50-period SMA converges with the December 24 low and the December 22 high.
To the upside, the $80.00 psychological level is likely to check the strength of a potential bullish reversal, ahead of the all-time high, at $85.87 hit earlier on the day.
(The technical analysis of this story was written with the help of an AI tool)
(This story was corrected on December 29 at 09:50 GMT as the name of Ukraine's President Volodymyr Zelenskyy was misspelled in the headline.)
- WTI advances on supply risks amid possible delays to a Ukraine peace deal.
- President Trump said the Ukraine peace talks made progress, but no territorial breakthrough.
- China said it plans to increase fiscal spending in 2026, signaling ongoing support for growth that could lift Oil demand.
West Texas Intermediate (WTI) Oil price rebounds after registering 2.5% losses in the previous session, trading around $57.30 per barrel during the European hours on Monday. Crude Oil prices rise as investors weigh the risk of a global supply glut amid potential delays to a Ukraine peace deal.
US President Donald Trump and Ukrainian President Volodymyr Zelenskiy are going to talk this weekend. Bloomberg reported Sunday that President Trump said he had made “a lot of progress” in discussions with Zelenskiy, though he noted no clear breakthrough on territorial issues and said a deal could still take several weeks.
Oil prices extend gains amid ongoing Middle East tensions, with Saudi airstrikes in Yemen and Iran’s “full-scale war” rhetoric against the United States (US), Europe, and Israel raising supply disruption risks.
Reuters cited IG analyst Tony Sycamore, who said traders are watching US enforcement against Venezuelan oil shipments and potential fallout from US strikes on ISIS targets in Nigeria, which produces about 1.5 million barrels per day.
China said it plans to increase fiscal spending in 2026, signaling ongoing support for growth that could lift Oil demand. However, crude remains on course for a decline of over 20% this year, its sharpest annual drop since 2020, amid expectations of a global surplus next year.
WTI Oil FAQs
WTI Oil is a type of Crude Oil sold on international markets. The WTI stands for West Texas Intermediate, one of three major types including Brent and Dubai Crude. WTI is also referred to as “light” and “sweet” because of its relatively low gravity and sulfur content respectively. It is considered a high quality Oil that is easily refined. It is sourced in the United States and distributed via the Cushing hub, which is considered “The Pipeline Crossroads of the World”. It is a benchmark for the Oil market and WTI price is frequently quoted in the media.
Like all assets, supply and demand are the key drivers of WTI Oil price. As such, global growth can be a driver of increased demand and vice versa for weak global growth. Political instability, wars, and sanctions can disrupt supply and impact prices. The decisions of OPEC, a group of major Oil-producing countries, is another key driver of price. The value of the US Dollar influences the price of WTI Crude Oil, since Oil is predominantly traded in US Dollars, thus a weaker US Dollar can make Oil more affordable and vice versa.
The weekly Oil inventory reports published by the American Petroleum Institute (API) and the Energy Information Agency (EIA) impact the price of WTI Oil. Changes in inventories reflect fluctuating supply and demand. If the data shows a drop in inventories it can indicate increased demand, pushing up Oil price. Higher inventories can reflect increased supply, pushing down prices. API’s report is published every Tuesday and EIA’s the day after. Their results are usually similar, falling within 1% of each other 75% of the time. The EIA data is considered more reliable, since it is a government agency.
OPEC (Organization of the Petroleum Exporting Countries) is a group of 12 Oil-producing nations who collectively decide production quotas for member countries at twice-yearly meetings. Their decisions often impact WTI Oil prices. When OPEC decides to lower quotas, it can tighten supply, pushing up Oil prices. When OPEC increases production, it has the opposite effect. OPEC+ refers to an expanded group that includes ten extra non-OPEC members, the most notable of which is Russia.
- USD/CAD rises to near 1.3700 as the Canadian Dollar faces slight selling pressure.
- The BoC remains uncertain over further monetary policy adjustments in the near term.
- Investors await the release of the FOMC minutes scheduled for Tuesday.
The USD/CAD pair trades 0.18% higher to near 1.3700 during the European trading session on Monday. The Loonie pair gains as the Canadian Dollar (CAD) is under pressure amid thin liquidity in markets at the start of a holiday-shortened week.
Broadly, the CAD has been outperforming its peers amid expectations that the Bank of Canada (BoC) will not cut interest rates in early 2026. The BoC is unlikely to cut interest rates soon, as the inflation in Canada has remained slightly above the 2% target in the last three months.
Last week, the BoC monetary policy minutes also showed that officials agreed the “current stance is appropriate” and stated that it is “difficult to predict the timing or direction of the next rate move”, but they stand ready “to respond if the outlook changes materially”.
Meanwhile, the US Dollar (USD) trades with caution ahead of the release of Federal Open Market Committee (FOMC) minutes of the December meeting on Tuesday. In the policy, the Fed decided to cut interest rates by 25 basis points (bps) to 3.50%-3.75%.
As of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades almost flat near 98.00. The DXY is close to its 12-week low of 97.75 posted last week.
USD/CAD technical analysis
In the daily chart, USD/CAD trades at 1.3692. The pair remains below the 20-day Exponential Moving Average (EMA) at 1.3786, which slopes lower and continues to cap rebounds, preserving a bearish bias.
The 14-day Relative Strength Index (RSI) at 30.69 is near oversold and has ticked higher from recent lows, signaling fading selling pressure. Measured from the 1.3540 low to the 1.4139 high, the 78.6% retracement at 1.3668 offers nearby support amid the pullback.
A bounce from 1.3668 could lift the pair toward the 61.8% retracement at 1.3769, while the 20-day EMA at 1.3786 would act as an additional hurdle. Failure to hold 1.3668 would keep bears in control, with momentum constrained by a sub-50 RSI, until a daily close back above the moving average improves tone.
(The technical analysis of this story was written with the help of an AI tool.)
Bank of Canada FAQs
The Bank of Canada (BoC), based in Ottawa, is the institution that sets interest rates and manages monetary policy for Canada. It does so at eight scheduled meetings a year and ad hoc emergency meetings that are held as required. The BoC primary mandate is to maintain price stability, which means keeping inflation at between 1-3%. Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Canadian Dollar (CAD) and vice versa. Other tools used include quantitative easing and tightening.
In extreme situations, the Bank of Canada can enact a policy tool called Quantitative Easing. QE is the process by which the BoC prints Canadian Dollars for the purpose of buying assets – usually government or corporate bonds – from financial institutions. QE usually results in a weaker CAD. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The Bank of Canada used the measure during the Great Financial Crisis of 2009-11 when credit froze after banks lost faith in each other’s ability to repay debts.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the Bank of Canada purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the BoC stops buying more assets, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Canadian Dollar.
- GBP/JPY retreats from long-term highs near 211.60 amid a broad-based Yen recovery.
- Concerns about a BoJ intervention are keeping yen bears in check.
- The broader GBP/JPY trend remained positive, with pullbacks finding buyers so far.
The Yen is trimming recent losses against its main peers on Monday, which has triggered a nearly 100-pip reversal on the GBP/JPY. The pair is trading near 210.50 at the time of writing after pulling back from session highs at 211.43.
The Japanese Yen depreciated further last week as investors pondered the timing of the Bank of Japan’s (BoJ) interest rate hike, amid growing concerns about the impact of Prime Minister Takaichi’s expansive policies on the country's already strained accounts.
Takaichi’s Finance Minister Satsuki Takayama launched the strongest warning to date last week. Takayama observed that Yen moves are not reflecting fundamentals and reiterated that Tokyo will take appropriate measures against Yen speculation. The thin trading volumes this week provide a good opportunity to step in for the Japanese authorities.
Technical analysis: Bears aim for 210.05 and 208.90 support areas
The 4-hour chart shows the GBP/JPY trading at 210.49, following another rejection at the long-term highs in the 211.50 - 211.60 area. The broader trend remains positive, with price action well above the trend line from 198.94 lows, which is offering support near 209.27. Immediate support stands at 210.05 (December 24 low), and at the mid-December highs, around 208.90.
The Moving Average Convergence Divergence (MACD) line sits below the Signal line and under the zero mark, with the histogram widening on the negative side, suggesting bearish momentum is building. The Relative Strength Index (14) has eased to 48.03, neutral after shedding overbought readings.
To the upside, above the mentioned long-term high, at 211.59 (December 22 high), the 127.2% Fibonacci extension of the December 15 to December 22 rally, at 212.75, and the 161.8% extension of the same cycle, at 214.38, are plausible targets.
(The technical analysis of this story was written with the help of an AI tool.)
Japanese Yen Price Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.03% | 0.10% | -0.16% | 0.10% | 0.09% | 0.30% | 0.00% | |
| EUR | 0.03% | 0.13% | -0.13% | 0.14% | 0.11% | 0.33% | 0.03% | |
| GBP | -0.10% | -0.13% | -0.25% | -0.01% | -0.02% | 0.20% | -0.10% | |
| JPY | 0.16% | 0.13% | 0.25% | 0.24% | 0.25% | 0.45% | 0.11% | |
| CAD | -0.10% | -0.14% | 0.00% | -0.24% | -0.01% | 0.21% | -0.09% | |
| AUD | -0.09% | -0.11% | 0.02% | -0.25% | 0.00% | 0.22% | -0.07% | |
| NZD | -0.30% | -0.33% | -0.20% | -0.45% | -0.21% | -0.22% | -0.30% | |
| CHF | -0.01% | -0.03% | 0.10% | -0.11% | 0.09% | 0.07% | 0.30% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
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