- Silver rises more than 1%, with an increasing bunder impulse; A key resistance is observed at $ 33.69 for rupture confirmation.
- The disappointing US labor data generate a renewed interest in silver as a defensive asset.
- Buyers must exceed $ 33.69 to aim at $ 34.58 and to the maximum of March about $ 35.00.
- A daily closure below $ 32.90 would change the trend to bassist, exposing key smokes as downward goals.
The price of silver advanced more than 1% on Thursday, rising above $ 33.00 as the demand for safe shelter metals increased after the publication of weak employment data in the US at the time of writing, the XAG/USD quotes at 33.31 $.
XAG/USD price forecast: technical perspective
The price of silver is consolidated for the third consecutive day, limited to the rise for resistance at 33.69 at the peak of May 22 and the decline for the simple mobile average (SMA) of 50 days at 32.70 $.
The impulse suggests that buyers have control, as indicated by the relative force index (RSI). However, they must exceed $ 33.69, which could pave the way for a challenge to 34. With more force, the next level of resistance of the XAG/USD would be the maximum of March 26 in 34.58 $, followed by $ 35.00.
For a bearish continuation, the XAG/USD needs to achieve a daily closure below the minimum oscillation of May 23, 32.90 $. In that case, the next test would be the Simple Mobile (SMA) of 50 days at $ 32.73. A decisive break will expose the 100 -day SMA at 32.11 $, followed by the 200 -day SMA at $ 31.40.
XAG/USD – Diario price 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.
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