- La Plata stagnates at $ 33.54, unable to reach the 34.00 $ in the middle of a strong US dollar.
- Mixed technical signals; The ‘hammer’ formation suggests a rise, the RSI hints at a resurgence of buyers.
- Be attentive to a break above $ 34.00 to aim at $ 34.51 and $ 35.00; A fall below $ 33.00 could see $ 32.50 and $ 31.92 (50 -day SMA).
The price of silver was consolidated below the figure of 34.00 for the second consecutive day and printed a bearish day, losing more than 0.68% on Thursday, characterized by the general strength of the US dollar. At the time of writing, at the beginning of the Asian session, the XAG/USD quotes at $ 33.54, practically unchanged.
XAG/USD price forecast: technical perspective
Although the silver reached a new minimum of five days of $ 33.10, bounced from the latter and remains in the average range of $ 33 -34 per Troy ounce after forming a ‘hammer’. Despite going back something in recent days, the relative force index (RSI) shows that buyers are entering, which could push the price of gray metal up.
If the XAG/USD exceeds $ 34.00, the following key resistance would be on October 30, 2024, reaching a peak of $ 34.51, followed by the $ 35.00 mark. On the other hand, if the XAG/USD falls below $ 33.00, the following support would be the psychological figure of 32.50 $, followed by the simple mobile average (SMA) of 50 days at $ 31.92.
XAG/USD – Diario price chart
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.
