- La Plata goes back from a maximum of $ 36.83, trades at $ 36.16 while the US dollar and yields rise.
- A bassist wrapping candle is formed; The weekly closure above $ 36.00 remains key to the upward structure.
- A break below $ 36.00 sets out $ 35.68 and $ 35.29; Alcistas must resume $ 36.83 to resume the bullish impulse.
The price of silver falls more than 1% on Friday, before the weekend, after reaching maximum of five days of 36.83 $, before $ 37.00. At the time of writing, the XAG/USD is traded at $ 36.16 due to a slight recovery in the US dollar and the increase in US treasure yields.
XAG/USD forecast: Technical Perspective
The price of silver backed away, forming a graphic pattern of ‘bassist envelope’, which opens the door to test lower prices. It should be said that achieving a weekly closure above $ 36.00 maintains this level as a strong support, with buyers pointing at higher prices.
However, for a resumption of the upward trend, the bulls need to recover the peak of June 26 in 36.83 $. Once surpassed, the following area of ​​interest would be 37.00, followed by the annual peak of $ 37.31. On the contrary, if the silver falls below $ 36.50, a $ 36.00 test is expected. More down there is the minimum daily of June 24, $ 35.68, followed by the last minimum of the 35.29 $ cycle.
Graphic Diary 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.
