- The silver plains in the first Asian session after reaching a weekly maximum of 36.83 $; List for a weekly gain of 1.80%.
- Intact bullish trend with higher maximums and minimums; The RSI shows buyers consolidating.
- The key resistance is found at $ 37.00 and the annual maximum of $ 37.31; The support is observed at 36.00 and 35.29 $.
The price of silver remains flat at the beginning of Friday’s Asian session, quoting about 36.60 $, practically unchanged, compared to the daily closure of Thursday, June 26. The XAG/USD seems to be ready to close the week with profits of more than 1.80%.
XAG/USD price forecast: technical perspective
La Plata maintains a bullish bias at the beginning of Friday’s Asian session, registering consecutive upward days, which pushed the gray metal towards a weekly maximum of 36.83 $. The XAG/USD has achieved a successive series of higher maximum and minimum, insinuating that the gray metal is directed up.
The relative force index (RSI) has remained flat after having risen for three consecutive days, in upward territory. This indicates that buyers are taking a break before trying higher prices.
If the XAG/USD rises above $ 37.00, look for the following resistance at the annual peak of $ 37.31. A rupture of this last will expose the level of 38.00 $. On the contrary, if the silver falls below $ 36.50, wait for a $ 36.00 test. A greater decrease is in the minimum daily of June 24, 35.68 $, followed by the last minimum of the 35.29 $ cycle.
XAG/USD – Diario price chart
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.
