- La Plata is consolidated about $ 36.00 while markets continue to favor risk assets.
- XAG/USD is quoted in a narrow range with a possible doji candle forming in the daily chart.
- The current price action remains supported above the key support level about $ 35.40.
The silver remains within a narrow range on Monday, with XAG/USD consolidating around the key psychological level of 36.00 $ at the time of writing.
The metal is under moderate pressure since the feeling of the market in general favors risk. US actions remain in their recent profits near historical maximums. The increase in the appetite for the risk continues to weigh on the demand for traditional assets of safe refuge, limiting the profits of the silver.
IntradÃa support has emerged around the minimum of the current session of $ 35.41, which has helped limit the downward movement of silver throughout June.
Technical Silver Analysis: XAG/USD is consolidated in a narrow range around 36.00 $
The daily candle shows a small body candle with a pronounced lower wick, similar to a possible DOJI formation.
This type of pattern appears typically when there is indecision in the market. Buyers and vendors push prices in both directions, but none of the sides gain clear control at the end of the day. The lower wick highlights the previous sale pressure that was counteracted by the purchase interest near a key support level.
The simple 20 -day mobile average is providing additional resistance at 36.11. The XAG/USD price action, together with the relative force index (RSI) about 55, suggests that the market is in a possible consolidation phase.
The presence of support around the Fibonacci recoil level of 23.6% of the inclination from April to June provides a solid technical floor in 35.12 $. Meanwhile, resistance levels above can limit short -term gains.
Daily La Plata graphics (XAG/USD)
If the price keeps the support above $ 35.38 and recovers the 20 -day SMA in 36.12 $, buyers could push the money back to the maximum of the previous week at 36.84 $.
A rupture confirmed above this level would present the maximum of the year until June 37.32 and possibly the maximum of February 2012 in 37.49 $, strengthening the broader upward trend.
In contrast, the inability to stay above the support of $ 35.38 could trigger a break below the upward channel, opening the door to a higher decline towards the 50 -day SMA in 34.21 $.
If that level fails, the following support is found in the fibonacci setback of 38.2% about $ 33,76, potentially pointing out a deeper correction within the broader trend.
FAQS SILVER
Silver is a highly negotiated precious metal among investors. Historically, it has been used as a value shelter and an exchange means. Although it is less popular than gold, operators can resort to silver to diversify their investment portfolio, for their intrinsic value or as a possible coverage during periods of high inflation. Investors can buy physical silver, in coins or bullion, or negotiate it through vehicles such as the funds quoted in the stock market, which follow their price in international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can cause the price of silver to shoot due to its safe refuge status, although to a lesser extent than that of gold. As an asset without performance, silver tends to climb with lower interest rates. Its movements also depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (XAG/USD). A strong dollar tends to maintain the price of silver at bay, while a weaker dollar probably drives rising prices. Other factors such as investment demand, mining – silver supply is much more abundant than gold – and recycling rates can also affect prices.
Silver is widely used in the industry, particularly in sectors such as electronics or solar energy, since it has one of the highest electrical conductivities of all metals, surpassing copper and gold. An increase in demand can increase prices, while a decrease tends to reduce them. The dynamics in US economies, China and India can also contribute to price fluctuations: for the US and particularly China, its large industrial sectors use silver in several processes; In India, the demand for consumers for precious metal for jewelry also plays a key role in pricing.
Silver prices tend to follow gold movements. When gold prices go up, silver typically follows the same path, since their status as shelter is similar. The gold/silver ratio, which shows the number of ounces of silver necessary to match the value of an ounce of gold, can help determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that silver is undervalued, or that gold is overvalued. On the contrary, a low ratio could suggest that gold is undervalued in relation to silver.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
