- La Plata softens from a maximum of 14 years of 39.53 $ in the midst of an improved risk feeling and a stronger US dollar.
- Cash price is about $ 39,00, with a 0.50% drop in the day but an increase of more than 2.30% in the week.
- The silver remains well above its EMAS of 9, 21 and 50 days on the rise, maintaining a bullish technical structure.
La Plata (XAG/USD) retreces on Thursday after marking a new maximum of 14 years of $ 39,53 on Wednesday, since the improvement in global commercial feeling promoted appetite for risk and affected the demand for traditional shelter assets such as precious metals. At the time of writing, the metal is around $ 39.00, with a drop of almost 0.50% in the day. The correction occurs in the midst of a generalized stabilization of the US dollar (USD) and a rebound in global actions driven by optimism around a possible tariff agreement between the US and the EU.
Despite the intradic correction, La Plata remains high near maximums of 14 years, oscillating around levels not seen since September 2011, highlighting the force of the prevailing bullish trend. The metal has risen almost 2.36% this week, supported by the sustained weakness of the dollar.
In the daily chart, La Plata continues to follow the upper limit of an upward ascending channel that has guided the price action since the beginning of April. The cash price remains well above the exponential mobile socks (EMAS) of 9, 21 and 50 days, all of which are in ascending trend and reinforce the broader upward structure.
Momentum indicators also support the ongoing upward trend. The relative force index (RSI) in the daily chart has decreased modestly to 69 after briefly entering overwhelming territory, suggesting that the rally is cooling without reversing. Meanwhile, the average directional index (ADX) points to the north in around 23.60, indicating that the underlying trend is not only intact, but is also gaining force slowly.
In the 1 hour graph, the silver recently broke a classic cup pattern with handle, with the handle forming like a descending wedge – a bullish continuation pattern. However, the break has stagnated near the 39.50 $ brand, since buyers struggle to maintain the impulse. At the time of writing, the metal is quoted just below the EMA of 21 periods, which has flattened around $ 39,09 and currently acts as an immediate resistance, limiting the intradic bullish potential.
The RSI in the hourly chart has bounced from over -sales territory and now is about 46, pointing out a recovery momentum but lacking a strong follow -up. The ADX, meanwhile, is rising to about 35, indicating a firm underlying trend that continues to favor the bulls despite the current pause in the price action.
With the widest technical structure still inclined up to rise, the immediate resistance is seen at $ 39.50, followed by the psychological barrier key at $ 40.00. A decisive rupture above this area could trigger a new impulse towards $ 42.00 and potentially $ 43.00 in the next sessions. On the contrary, the initial support is found at $ 38.70 – the minimum of July 22 – followed by the EMA of 21 days in 37.70 $. The 50 -day EMA, about 36.30 $, is aligned with the lower limit of the ascending channel, offering a stronger support and keeping intact the broader upward trend.
SILVER – FREQUENT QUESTIONS
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.
