- The price of silver earns impulse about $ 36.00 in the first measures on Monday
- Investors seek to expand their exposure to refuge assets beyond gold, supporting the price of silver.
- The EE.UU de Mayo Stronger Employment Report could be promoted to the USD and limit the bullish white metal potential.
The price of silver (XAG/USD) is quoted in positive territory around 36.00 during the Asian session on Monday. White metal advances despite the US USEA Data stronger than expected. Later on Monday, investors will closely follow developments around commercial conversations between the US and China.
Geopolitical and economic uncertainty could provide some support for the price of silver as investors seek more holdings in shelter assets. The US Treasury Secretary, Scott Besent, the Secretary of Commerce, Howard Lutnick, and the trade representative, Jamieson Greer, are scheduled to speak with Chinese officials about commercial conversations.
In addition, industrial demand for applications such as solar panels contributes to the USD’s bullish potential. The La Plata Institute estimated that the supply of the metal was 15% below the demand in 2024 and is projected to see another deficit in 2025.
On the other hand, the optimist Employment Report of the US USA gave the US Federal Reserve (FED) a way of being cautious before commercial conversations between the US and China, which are scheduled to be carried out in London later in the day. This, in turn, could boost the dollar and affect the price of raw materials called in USD. Federal funds aimed at a greater possibility that the FED maintains its reference interest rate without changes to September monetary policy meetings.
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.
