- The price of silver lacks an intra -firm direction and is consolidated during the Asian session.
- The mixed technical configuration advises caution before opening new directional positions.
- A sustained movement above 37.30 $ -37.35 would be seen as a key trigger for bullies.
La Plata (XAG/USD) struggles to capitalize on the good rebound from the previous day from the 36.15 $ region, or a minimum of several days, and oscillates within a narrow range during the Asian session on Tuesday. White metal currently quotes around $ 36,80, almost unchanged in the day in the middle of a mixed technical configuration.
The relative force index (RSI, 14) daily remains above 50, although the MACD histogram and the signal line does not yet confirm the bullish bias. This, in turn, suggests that any movement above the 37.00 brand could stagnate near the region of 37.30 $ -37.35 $, or the highest level since February 2012 reached earlier this month. However, some follow -up purchase would establish the stage for an extension of an upward trend of almost three months.
On the other hand, the 36.50 $ -36.45 $ area could offer immediate support to the XAG/USD before the region of 36.15 $ -36.10 $. An additional drop below the 3,00 mark could be extended to the horizontal zone of 35.50 $ -35.40 $. The latter represents the lower limit of a short -term trading range maintained during the last month approximately and should act as a key point. Therefore, a convincing rupture below would change the short -term bias in favor of bassists.
The XAG/USD could then accelerate the fall towards the following relevant support near the psychological brand of 35.00. The subsequent fall has the potential to drag the white metal to an intermediate support about $ 34.75 en route to the region of 34.45 $.
Daily graphic silver
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.
