- The price of silver rises 0.86%, points to the maximum annual by 37.31 $ after exceeding the key level of 36.83.
- The rupture above the double floor line suggests a bullish continuation.
- The next resistance is at $ 37,49 (maximum of 2012), then at $ 38.00.
The price of silver is listed above two weeks on Thursday, near the figure of 37.00, with an increase of 0.86% at the time of writing these lines. The positive economic data in the United States (USA) promoted the dollar, mainly in front of gold. The gray metal capitalized the current market structure, since double soil formation is coming.
XAG/USD forecast: Technical Perspective
As mentioned above, La Plata exceeded the maximum of June 26, 36.83 $, which sponsored an increase towards $ 37.00. However, a daily closure is needed above the previous one so that traders clear the way to challenge the maximum of the year to date (YTD) of 37.31 $.
The next key resistance would be 37.49 $, on February 29, 2012, before 38.00. On the other hand, silver could take a negative turn if the price in cash falls below $ 36.00, raiding the way for a 3,82 $ test. Once surpassed, the next stop would be $ 35.00, before challenging the simple mobile average (SMA) of 50 days in 34.32 $.
Graphic Diary of the XAG/USD
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.
