XAG/USD is how silver is labeled for spot trading on the foreign exchange market. Silver (XAG) is traded against the US dollar (USD), so its price shows how much one ounce of silver is worth in USD. XAG/USD is traded like any traditional currency pair.
In addition to gold, silver is a precious metal and is used in the creation of jewelry and silverware. It also has significant industrial use in solar panels, batteries, medical and photography equipment, and motor vehicles.
What drives the price of silver?
The price of silver is driven by similar factors to gold including inflation rates, global DP growth, interest rates, and the monetary policies of influential central banks.
Supply and demand factors play a greater role in silver’s price than gold’s because it has less market liquidity compared to gold. Market sentiment also plays a greater role in silver’s price over gold. Consumer confidence data and movement in global bond and equity markets can indicate price action for silver.