- The price of silver ranges within the range of Thursday around $ 33 despite the significant weakness of the US dollar.
- Increased concerns about US tax imbalances have kept the US dollar in an unfavorable position.
- A new escalation is expected in commercial tensions between the US and the EU supports the price of silver.
The price of silver (xag/usd) wobbles in a range adjusted around $ 33 during negotiation hours in North America on Friday. The white metal remains almost flat despite a substantial weakness in the US dollar (USD). The US dollar index (DXY), which measures the value of the dollar against six main currencies, reaches a minimum of more than three weeks around 99.10.
Technically, a lower American dollar makes the price of silver a value commitment to investors.
The US dollar continues to suffer from the growing concerns about the fiscal imbalances of the United States (USA) following the law cuts and expenses of President Donald Trump, which has been advanced to the Senate after being approved by the House of Representatives.
According to the Congress Budget Office, which is non -partisan, Trump’s new law would increase US debt by 3.8 billion dollars during the next decade, which is currently 36.2 billion dollars. Such a scenario would further damage the sovereign credit rating of the US, which was already reduced by Moody’s to AA1 since AAA last week.
Meanwhile, a new escalation in commercial tensions between the US and the European Union (EU) is expected to support the price of silver. Theoretically, the demand for shelter assets, such as silver, increases when global economic tensions intensify.
During the first hours of negotiation in North America, US President Trump threatened to impose 50% tariffs on the EU in a publication in Truth.Social. Our discussions with them are not going anywhere! Therefore, I am recommending a 50% direct tariff to the European Union, starting on June 1, 2025. There is no tariff if the product is built or manufactured in the United States. Thanks for your attention to this matter! “Trump said
Technical Analysis of La Plata
The price of silver ranges within the negotiation range of Thursday around $ 33 on Friday. The white metal is negotiated in a range between $ 31.65 and 33.70 for a month. The short -term white metal trend is uncertain since it wobbles around the exponential (EMA) mobile average of 20 periods, which is negotiated about 32.75 $.
The relative force index (RSI) of 14 periods ranges within the range of 40.00-60.00, indicating a lateral trend.
Looking up, the maximum of March 28, $ 34,60 will act as a key resistance to metal. At the bottom, the minimum of April 11, $ 30.90 will be the key support zone.
GRAPH DIARY OF LA PLATA
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.
