- La Plata falls to $ 36.52 after briefly trying the resistance zone of 37.00.
- The RSI indicates overcompra conditions, suggesting a possible short -term setback.
- Alcista trend intact above $ 35.00; Key support seen at $ 35.40 and $ 35.00.
The price of silver faces resistance about $ 37,00 and fell around 0.50% on Tuesday, since the US dollar manages to recover, with investors feeling more confident in an agreement between the US and China later a day. At the time of writing, the XAG/USD quotes at $ 36.52, below its opening price.
XAG/USD price forecast: technical perspective
Despite going back, the XAG/USD still has a bullish bias after exceeding the peak of October 23, 2024 of 34,86 $, which exacerbated an advance at $ 35.00 and beyond. It should be noted that the relative force index (RSI) reached overcompra conditions.
Although this establishes a setback, buyers would continue safe while the silver remains above the 3,00 brand. The key resistance is at 36.82 $, 37.00 and 37.49 $, a maximum of 13 years established on February 29.
On the contrary, if the XAG/USD falls below $ 36.00, the first support would be $ 35.40, a maximum of October 2012, which since then has become support. Once surpassed, the next stop is $ 35.00, followed by the figures of $ 34.00 and 33.00, before the simple mobile average (SMA) of 50 days in 32.95 $.
XAG/USD price forecast: technical perspective
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.
