- The silver prepares to close the week with a fall of more than 1.80% while the strong dollar presses metals.
- The bassist ‘harami’ pattern and the soft rsi suggest that the downward bias could be accelerated.
- The key support is found at $ 32.70 and the 50 -day SMA; The rise is limited by $ 33.69 and 34.00.
The price of silver became negative on Friday during the North American session, prepared to close the week with losses of more than 1.80% while the dollar recovered during the day. The XAG/USD quotes at $ 32.87, with a drop of 1.29%.
XAG/USD price forecast: Technical Perspectives
The price of silver is negotiated in a contained way but formed a ‘harami bassist’ candle graphic pattern with biseistic implications. The momentum seems to be changing in favor of the vendors, since the relative force index (RSI) has reached a lower minimum in the neutral line of the RSI, which, if it breaks, could point out that the gray metal is prepared for a downward movement.
If the XAG/USD remains below $ 33.00, the following support to break would be a minimum of May 29, 32.70 $. In that case, the next test would be the simple mobile average (SMA) of 50 days at $ 32.68, followed by a 100 -day SMA test in 32.11 $ and the 200 -day SMA at $ 31.40.
However, if buyers intervene and break the $ 33.00, they will seek an upward movement towards $ 33.69, which could pave the way for a 34 $ challenge. With more force, the next level of resistance of the XAG/USD would be the maximum of March 26 in 34,58 $, followed by $ 35.00.
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.
