- The price of silver is consolidated around $ 32.50 while investors seek new events in commercial conversations between the US and China.
- The White House has expressed confidence in the commercial agreement between the US and China.
- The fight between Trump and Powell keeps the US dollar in an unfavorable position.
The price of silver (xag/USD) is loudly traded around $ 32.50 during European negotiation hours on Tuesday. White metal has remained lateral in the last three days of negotiation while investors seek new developments in commercial relations between the United States (USA) and China.
In the second week of this month, US President Donald Trump announced a 90 -day pause in the execution of reciprocal tariffs, but kept huge taxes on China as retaliation by imposing taxes similar to US imports.
Meanwhile, Washington has expressed optimism about the commercial agreement between the US and China. “We are sure that it will work with China,” said US Secretary of Commerce, Howard Lutnick, during the weekend.
Even so, investors are cautious regarding commercial relations between the US and China, since the struggle between Trump and China is more a issue of “dignity” than a topic of “tariff level”. The scenario of a fight between the US and China in the long term will be favorable for safe refuge assets, such as silver. Historically, precious metals have good performance in times of high global economic tensions.
Last week, the White House Secretary, Karoline Leavitt, said the president is open to a commercial agreement with Beijing, but must make the first movement. “The ball is on China’s court: China needs to make an agreement with us, we don’t have to make an agreement with them,” Leavitt said, according to Reuters.
Meanwhile, the growing dispute between Donald Trump and the president of the Federal Reserve (Fed), Jerome Powell, on the interest rates policy has hit the US dollar (USD) hard. Technically, a lower American dollar makes the price of silver a value commitment to investors.
Technical Analysis of La Plata
The price of silver is quoted with ups and downs in a range between 32.08 and 33.12 $ since Wednesday. The white metal has remained lateral after a strong upward movement since April 7. The 20 -day exponential (EMA) mobile average about $ 32.00 continues to provide support to the price of silver.
The 14-day relative force (RSI) index oscillates in the range of 40.00-60.00, indicating a volatility contraction.
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.
