- La Plata remains above $ 34,54 after a brief fall below $ 34.00; Buyers resurface in intradic weakness.
- The RSI remains bullish; A rupture above $ 35.00 opens the road to $ 37.49, the maximum of 2012.
- Daily closure below $ 34,58 risks a setback at $ 34.00 and support at $ 33.69.
The price of silver cut some of the profits of 5% on Monday, lowering 0.52% on Tuesday, with the gray metal quoting near the area of ​​34.50 $, stuck at the maximums of the current week. The optimistic economic data in the United States (USA) pushed the XAG/USD below $ 34,00, but buyers emerged and raised the metal that does not yield.
XAG/USD price forecast: technical perspective
The price of silver maintains its bullish bias despite going back something during the session and remains above the maximum oscillation of October 29, 34.54 $, which is considered the first level of support. The relative force index (RSI) indicates that buyers have control; However, they need to exceed the next key resistance level, which is observed at $ 35.00. Once clear, the silver would be ready to try the maximum of February 29, 2012 of 37.49 $.
On the contrary, a daily closure of the XAG/USD below the peak of March 28, 34.58 $ would probably result in a fall around 34.00. In case of greater weakness, the next level of support would be the peak of May 22, which has since supported 33.69 $.
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.
