- La Plata remains about $ 32.50, with buyers unable to overcome the key resistance.
- Next objects: 33.00, maximum of February 20, $ 33.20 and maximum of the 33.39 $ cycle.
- A break below $ 32.00 could expose $ 31.50 and the 100 -day SMA at $ 31.21.
The price of consolidated silver, breaking three days of profits, quoting near the 32.50 $ area, with the buyers failing to prolong their progress to challenge the last maximum of the 33.39 $ cycle. At the time of writing, the XAG/USD is practically unchanged at the beginning of Friday’s Asian session.
XAG/USD price forecast: a technical perspective
La Plata (XAG/USD) is maintained laterally about $ 32.50 without buyers or vendors can decisively push the price of the gray metal up or down. The relative force index (RSI) shows that the momentum remains flat, although buyers have the advantage.
That said, the first resistance of the XAG/USD would be 33.00, followed by key levels as the maximum of February 20, $ 33.20 and the maximum of the February 14 cycle, 33.39 $. On the contrary, if the XAG/USD falls below $ 32.00, the following support would be $ 31.50, before the simple mobile average (SMA) of 100 days at 31.21 $. Greater weakness could expose $ 31.00, with additional support in the 200 -day SMA about $ 30.48.
Daily price of the XAG/USD
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.
