- The silver lacks an intra -firm direction firm and oscillates between warm profits/minor losses on Friday.
- The technical configuration favors the bullish operators and supports the case for a greater short -term appreciation.
- A convincing break is needed below the minimum of the previous night to deny the constructive perspective.
La Plata (XAG/USD) struggled to capitalize on the recovery of the previous day from the 35.45 $ area, or the weekly minimum, and witnessed a good price movement in both directions during the first half of the European session. The white metal now seems to have stabilized in neutral territory, around the area of ​​36.30 $ -36.35 $, and remains at an attainable distance of its highest level since February 2012 played on Monday.
From a technical perspective, the price action within the rank observed during the last week could still be classified as a troker consolidation phase in the context of a strong rebound from the monthly minimum of April. In addition, the daily relative force index (RSI) has decreased from slightly. This, together with the lack of significant sales, suggests that the road of lower resistance for the XAG/USD is upwards.
Therefore, any corrective setback below the level of 36.00, or the minimum daily, could continue to attract some buyers near the minimum of the previous night, around the area of ​​35.45 $. However, a convincing rupture below the latter could cause some technical sales and drag the XAG/USD at levels below the psychological level of 35.00. The corrective setback could be further extended towards the intermediate support of 34.55 $ -34.50 $ en route to the round figure of 34.00 $.
Meanwhile, upward operators could now wait a movement beyond the peak of several years, around the region of 36.85 $ -36.90 $, before opening new positions. The XAG/USD could then extend a well -established short -term bullish trend beyond the level of 37.00 and aim towards testing the maximum of February 2012, around the mid -$ 37.00.
Daily graphic silver
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.
