- The price of silver earns about $ 33.30 am in the midst of uncertainty about commercial relations between the US and China.
- The US Treasury Secretary, Besent, has declared that China should initiate commercial discussions with them.
- Investors await the US Jolts employment offers data for March.
The price of silver (XAG/USD) lifes up to 33.30 $ during European negotiation hours on Tuesday. White metal wins as investors begin to doubt whether the unworthy in the commercial war between the United States (USA) and China is underway.
A new increase in uncertainty about commercial relations between the US and China has emerged from the comments of the US Treasury Secretary, Scott Besent, who said that Beijing should be the one who starts commercial conversations. “I think it depends on China Descalar, because they sell us five times more than we sell them,” Besent said in an interview in CNBC box box on Monday. However, Besent indicated that commercial discussions with other nations are going well.
Although Besent’s comments have indicated that the commercial war will be mainly between Washington and Beijing, the stagnation is expected to maintain global economic tensions. Theoretically, the price of silver behaves strongly when the fears of global economic agitation increase.
Meanwhile, the US dollar (USD) rises before the US Jolts job offers data for March, which will be published at 14:00 GMT. The American dollar index (DXY), which tracks the value of the dollar against six main currencies, moves up 99.30. Investors expect US employers to have published 7.5 million jobs, slightly below 7.56 million seen in February.
This week, investors will pay special attention to a series of US economic data, including non -agricultural payroll (NFP), which will influence market expectations on the monetary policy perspective of the Federal Reserve (FED).
Technical Analysis of La Plata
The price of silver aims to review a maximum of more than three weeks around 33.70. The short -term perspective of white metal remains bullish, since it maintains the exponential (EMA) mobile average of 20 days, which quotes around $ 32.73.
The 14 -day relative force (RSI) index struggles to break over 60.00. A new bullish impulse would arise if the RSI breaks above that level.
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.
