- The price of silver can find an initial barrier in 39.13 $, the highest since September 2011.
- The bullish bias wins impulse as the 14 -day relative force index (RSI) remains above level 50.
- The immediate support is located in the nine -day exponential mobile average, around the level of $ 37.79.
The price of silver (XAG/USD) maintains its position after registering slight losses in the previous session, quoting around $ 38,20 per Troy ounce during the Asian hours of Monday. The technical analysis of the daily graphic suggests that the price of precious metal moves up into an ascending channel pattern, indicating a persistent bullish bias.
The 14 -day relative force (RSI) index remains above level 50, suggesting that the bullish bias is strengthening. In addition, the price of silver is quoted above the nine -day exponential mobile average (EMA), indicating that the impulse of the short -term price is stronger.
On the positive side, the XAG/USD pair can aim 39.13 $, the highest since September 2011, reached on July 14. A successful rupture above this level could support the price of silver to explore the region around the upper limit of the ascending channel, around the psychological level of $ 41,50.
The price of silver can test the immediate support in the nine -day EMA of 37.79 $, followed by the lower limit of the upward channel at the level of 37.20 $. Additional falls would weaken the bullish bias and lead to the XAG/USD torque to test the 50 -day EMA at $ 35.91. A rupture below this level would decrease the impulse of the price in the medium term and lead to the price of silver to navigate in the region around the minimum of two months at $ 31.65, which was recorded on May 15.
XAG/USD: Daily graphic
SILVER – FREQUENT QUESTIONS
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.
