La Plata continues to register lower maximums since it reached $ 33.70 last week
The recent price action is forming a descending triangle pattern, a bearish signal.
XAG/USD: Below the 32.60-32.70 $ support, the next objectives are $ 32.15 and $ 31.70.
Silver prices (XAG/USD) are reducing losses during the European session on Friday. The pair has once again been above the level of $ 33,00 after a significant reversal during the Asian session.
From a broader perspective, however, the price action continues to oscillate within the recent range, with the RSI of 4 hours moving from one side around the level 50, which indicates a clear lack of impulse.
Technical analysis: XAG/USD continues to quote inside a triangle pattern
The four -hour graphics show the precious metal moving inside a descending triangle pattern, registering lower maximums since their rejection at $ 33.70. This pattern often anticipates a bassist result.
The immediate support is located in the 32.60-32.70 $ area, where bassists were contained on May 22 and 25. If this area yields, the next support levels are the minimum of May 20 in 32.15 and the minimums of May 1 and 15 in the area of ​​31.70 $.
Upwards, a successful breakdown of the top of the triangle, now around $ 33,40, cancels this perspective and focuses attention on the maximum of $ 33.70.
XAG/USD 4 -hour 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.
