- The price of silver can aim an initial barrier in the upper limit of the upward channel around 37.00.
- The bullish bias wins impulse as the 14 -day relative force index (RSI) remains above level 50.
- Immediate support seems to be around the nine -day EMA at 36.22 $.
The price of silver (xag/USD) moves down after registering almost 1% the previous day, quoting around $ 36,40 per Troy ounce during the early European hours on Thursday. The technical analysis of the daily graph shows that the price of precious metal is maintained within an ascending channel pattern, which suggests a persistent bullish bias.
The 14 -day RSI is maintained above level 50, suggesting a prevalent upward perspective Outlook. In addition, the price of silver is positioned above the nine -day exponential mobile average (EMA), highlighting that the short -term impulse is being strengthened.
The XAG/USD torque can aim its immediate barrier in the upper limit of the upward channel around the psychological level of 37.00 $, followed by $ 37.32, the highest since February 2012. A break above this crucial resistance zone could reinforce the bullish bias and open the door so that the price of silver explores the region around the substantial level of 38.00 $.
At the bottom, the price of silver can try immediate support in the nine -day EMA of 36.22 $. A rupture below this level could weaken the impulse of the short -term price and exert the downward pressure on the torque to navigate in the area around the lower limit of the upward channel at the level of 35.00 $, followed by the EMA of 50 days in 34.52 $. A greater decrease would weaken the impulse of the price in the medium term and lead to the price of silver to navigate in the region around two months at $ 31.65, which was recorded on May 15.
XAG/USD: Daily graphic
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.
