- The price of silver could find immediate support in the 50 -day EMA of $ 32.71.
- A bullish bias could relive as the 14 -day RSI remains slightly above level 50.
- The initial resistance appears in the nine -day EMA of 33.10.
The price of silver (XAG/USD) offers its recent profits recorded in the previous session, quoting around $ 33,00 per Troy ounce during Friday’s Asian hours. A neutral bias prevails since the technical analysis of the daily chart shows the price of precious metal consolidating within a rectangular pattern.
In addition, the price of silver is around the exponential (EMA) mobile average of nine days, highlighting even more than the short -term impulse is impartial. However, the 14 -day relative force (RSI) index remains slightly above level 50, indicating a potential for a bullish bias to arise.
The price of silver can be directed to the immediate support in the EMA of 50 days of 32.71 $. A rupture below this level could weaken the impulse of the price in the medium term and carry the price of precious metal to approach the lower limit of the rectangle at $ 31.90, followed by the minimum of six weeks at $ 31.65, which was recorded on May 15.
On the positive side, the XAG/USD torque proves the immediate barrier in the nine -day EMA of 33.10 $. A rupture above this level could improve the impulse of the short -term price and support the price of gray metal to explore the region around the upper limit of the rectangle at $ 33.60, aligned with the $ 33.69, the maximum of seven weeks reached on April 24. A rupture above this crucial resistance zone could cause the appearance of the bullish bias and take the price of silver to approach to the maximum of seven months of 34,59 $, seen for the last time on March 28.
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.
