- XAG/USD bounces from a minimum of five days, forms a bullish hammer while the USD falls to a minimum of three years
- The bullish hammer pattern suggests a renewed rise impulse towards 36.88 $ and 37.49 $ – a maximum of 13 years.
- The RSI remains stable despite the overstock conditions, noting that buyers are still in control.
- The key support is found at 36.00 and $ 35.40; A rupture below would open the door to $ 35.00 and lower levels.
The price of silver bounces from a minimum of five days of $ 35.46 and exceeds the $ 36.00 mark on Thursday while the dollar is beaten, falling almost minimum of three years. At the time of writing, the XAG/USD quotes at 36.30 $, registering modest profits of 0.25% on Thursday, at the end of the North American session.
XAG/USD price forecast: technical perspective
As the session of Thursday ends, the Alcista de la Plata trend will probably continue as a graphic sailing pattern called ‘hammer’ is formed. This means that the XAG/USD could test the maximum swing of June 9 in 36.88 $ before buyers fix their gaze to higher prices.
The Relative Force Index (RSI) left over the territory of overcompra but, instead of pointing down, it remains flat. Therefore, the path of less resistance is inclined towards the rise.
The first key resistance is the maximum of the year to date (YTD), followed by the figure of 37.00. Once surpassed, the next stop would be $ 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 level would be $ 35.40, a maximum of October 2012 that has since become a support level. Once exceeded, the next stop is $ 35.00, followed by the figures of 34.00 and 33.00 $.
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.
