- La Plata extends its rally as the feeling has improved and the sure shelter flows feed the break towards the annual maximums.
- The RSI shows a strong bullish impulse; The rupture of $ 34,86 could open the road to $ 35.00 and $ 37.49.
- A key support is found at $ 34.58 and 33.69 if the price goes from current levels.
Silver prices shoot, winning more than 5% on Monday, since investors that had become risk rely previously pushed into the gray metal up. However, as the feeling of the market improved, buyers continued to drive the XAG/USD up, quoting $ 34.65 near the annual maximums.
XAG/USD price forecast: technical perspective
Silver prices are prepared to stay bullish and extend their profits to challenge the maximum of 2023 of $ 34.86. The bulls are still commanded, as indicated by the relative force index (RSI), which shows a more pronounced increase.
That said, the next resistance for the XAG/USD would be the maximum of last year. A rupture of this last will expose the level of $ 35.00, followed by the maximum of February 29, 2012 of 37.49 $. On the contrary, if the XAG/USD falls below the maximum of March 28, $ 34,58, a decrease towards $ 34.00 is likely. In case of greater weakness, the next level of support would be the peak of May 22, which has since supported 33.69 $.
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.
