- The price of silver earns up to about $ 32.60 at the expense of the US dollar.
- The US NFP data will influence market speculation about the Fed monetary policy perspective.
- The relaxation of commercial tensions between the US and China decreases the demand for safe refuge assets.
The price of silver (XAG/USD) moves up to about 32.60 $ during European negotiation hours on Friday. The white metal earns as the US dollar (USD) corrects before the US non -agricultural payroll data (NFP) for April, which will be published at 12:30 GMT.
The US dollar index (DXY), which tracks the value of the dollar against six main currencies, goes back to about 99.90 from the maximum of two weeks of 100.37. Technically, a lower American dollar makes the price of silver a value commitment to investors.
The US NFP report is expected to show that the economy added 130K new workers, significantly less than the March 228K reading. The unemployment rate remains stable at 4.2%. Investors will pay special attention to US NFP data as they will indicate the impact of reciprocal tariffs announced by President Donald Trump on the so -called “Liberation Day” on April 2. Labor market data will influence market expectations on the monetary policy perspective of the Federal Reserve (FED).
In addition, the hopes of a decalsed in the commercial war between the US and China have also supported the price of silver. The demand for silver as an industrial input would increase if the tariff dispute between the US and China is resolved. Market experts would review their economic projections for China if a commercial agreement with the US is ensured, which had been previously affected. La Plata has applications in various industries such as electric vehicles (EVS), mining and electronics, etc.
However, the relaxation of commercial tensions between the US and China will reduce the demand for silver as a safe refuge asset. Historically, the attractiveness of safe refuge assets, such as silver, improves in increasing global economic tensions.
Technical Analysis of La Plata
The price of silver fights to return to a maximum of more than three weeks around 33.70. The short -term white metal perspective has become uncertain when falling below the 20 -day exponential (EMA) mobile average, which quotes around 32.65 $.
The 14 -day relative force (RSI) index falls below 50.00 after failing to break over 60.00, indicating that investors are no longer bullish.
Looking up, the maximum of March 28, $ 34,60 will act as a key resistance to metal. On the negative side, the minimum of April 11, $ 30.90 will be the key support zone.
GRAPH DIARY OF LA PLATA
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.
