- Silver prices rise slightly as the weakness of the US dollar raises alternative shelter assets.
- Credit risk clouds the perspectives of the US, raising the demand for alternative assets.
- XAG/USD is consolidated below $ 33.00 while an adjusted range limits the bullish impulse.
La Plata (XAG/USD) is contributing slightly up to Monday, staying above the level of 32.00 $ during the US session, since the general weakness of the US dollar (USD) feeds the demand for alternative refuge assets. This movement responds to Moody’s’s reduction to the US sovereign credit rating, which has added market concerns about fiscal sustainability and long -term growth prospects.
At the time of writing, silver prices have risen 0.05% in the day, with the XAG/USD in the last time seen around $ 32.30. The metal is trying to recover the simple 50 -day mobile average of about $ 32.75, which has limited profits in recent sessions.
The sovereign reduction of the United States by Moody’s triggers the withdrawal of the dollar
On Friday, Moody’s Investors Service reduced the sovereign credit rating of the United States from AAA1, citing increasing concerns about increasing debt levels, political uncertainty and long -term impact of high interest rates. This is the last important agency to strip the US of its top -level credit qualification, which generates alarm on its fiscal path and the possible long -term drag on economic growth.
In the sequel, the US dollar has been under renewed pressure, with The US dollar index (DXY) falling while investors reassess the position of the dollar as the main refuge currency in the world.
Since silver is valued in US dollars, the relative weakness of the USD has reinforced the attractiveness of precious metals.
Tariff threats, commercial uncertainty and changes in Fed policy keep La Plata in the focus
The ongoing geopolitical tensions and tariff threats of the Trump administration are also weighing about the feeling.
The White House reiterated during the weekend that high tariffs could be reinstated to countries that do not negotiate in “good faith”, which generates concerns about commercial friction and global supply chains.
Meanwhile, the market approach moves towards the avalanche of Federal Reserve speakers (Fed) this week.
Five Fed officials are scheduled to speak on Monday, and the operators are observing closely in search of clues about the trajectory of interest rates and if the Fed will maintain its restrictive position amid the growing fiscal and political uncertainty.
Xag/usd limited in range below key mobile socks while impulse stops
La Plata (XAG/USD) is contributing lightly up to 32.33 $ on Monday, but remains confined within a adjusted consolidation range below the single mobile average of 50 days (SMA) at $ 32.75.
The metal has struggled to gain a sustained impulse, with resistance forming around the area of 33.00 to $ 33.23, an area defined by the maximum oscillation and horizontal barriers.
Downwards, immediate support is found in 61.8% of Fibonacci setback From March to April at 32.07 $, followed by the 100 -day SMA at $ 31.96.
Greater weakness could expose the midpoint of the movement mentioned above at 31.29. $
The impulse remains neutral, as reflected in the relative force index (RSI) that remains about 47.57, offering any clear directional signal.
Unless the XAG/USD breaks decisively above $ 33.23 or below $ 31.96, it is likely that the torque remains limited in short -term range, with the operators waiting for a fundamental catalyst to boost the next movement.
Daily La Plata graphics (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.
