- La Plata bounces since the minimum last week of $ 35.51, rises above $ 36.00 with a recovery of 1.7%.
- The RSI points to an upward impulse; Key resistance at 36.50 and the annual maximum of $ 37.32.
- Close below $ 36.00 could expose support levels at $ 35.46 and 34.59 $.
Silver prices stabilized at the beginning of the week, rising 0.39%, since a slight risk aversion amid high geopolitical tensions provided support. The XAG/USD reached a daily maximum of $ 36.36 before settling at $ 36.14, ending three days of losses.
XAG/USD price forecast: technical perspective
La Plata maintains a bullish bias, despite having reached a weekly minimum of $ 35.51 last week. Since then, the XAG/USD has recovered more than 1.70%, raising the price of gray metal above 36.00, and racing the way for more increases.
The relative force index (RSI) shows that buyers are still in control. Therefore, a greater increase is expected.
If the XAG/USD rises above $ 36.50, this will expose the figure of 37.00. The following interest resistance zone would be the annual maximum of June 18 at $ 37.32, ahead of $ 37.50.
On the contrary, a daily closure below $ 36.00 could sponsor a movement towards the minimum oscillating of June 12, $ 35.46, ahead of the March 28 peak turned into a support into 34.59 $.
Graphic Diary of the price of 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.
