- The correction of silver has been limited to $ 34.00; The trend is still positive.
- The recovery of the US dollar is losing impulse before the US employment and services data.
- The XAG/USD bundles are focusing on the resistance area of 34.60 $ -34.80 $.
The correction of silver prices (XAG/USD) from the maximum of the year below $ 35.00 has been limited in the 34.00 $ area, and the precious metal bounced again to consolidate in the 34.50 $ 34.50 area on Wednesday, with the maximum of 34,80 $ at a short distance.
The bassists have been contained well above an anterior resistance area at 33.50 $ -33.70 $, and the 4-hour RSI remains well above level 50, highlighting the positive bias of the torque.
The American dollar index seems to have lost impulse, after a moderate recovery on Tuesday. The enthusiasm for the solid employment offers data seems to have decreased, with investors becoming cautious before the ADP data and the US services of the US services. The dollar needs more good news to maintain concerns about debt and US debt and tariffs at Raya.
In general, the XAG/USD maintains its bullish trend intact with the Extension of Fibonacci of 161.8% of the rebound from May 20 to 22, at 34.60 $, keeping the bulls ahead of the maximum of Monday, at 34,80 $. Above here, a maximum of late 2012 is $ 35.40.
In the lower part, the immediate support is at $ 34.00, followed by the aforementioned 33.70 $ and then in the 32.65 $ -32.75 $ area.
XAG/USD 4 -hour 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.
