- The price of silver can approach $ 37.32, the highest since February 2012.
- The bullish bias is strengthened as the 14 -day relative force (RSI) index remains above level 50.
- The nine -day EMA in 36.49 $ acts as an immediate support.
The price of silver (XAG/USD) drops slightly after stopping a three -day winning streak, quoting around $ 36.50 per Troy ounce, with a fall of more than 1% during European hours on Monday. The technical analysis of the daily chart suggests that the price of precious metal is maintained within an ascending channel pattern, indicating that an upward bias prevails.
The 14 -day relative force (RSI) index remains above level 50, strengthening a bullish perspective. However, the price of silver is quoted slightly above the nine -day EMA, but seems to be prepared to break below it, indicating a possible weakening of the impulse of the short -term price.
On the positive side, the XAG/USD pair can test again $ 37.32, the highest since February 2012. A successful breakdown above this level could support the price of silver to explore the region around the upper limit of the upward channel near the psychological level of 39.90 $.
The price of silver is testing immediate support in the nine -day EMA of 36.49 $. A rupture below this level could weaken the impulse of the short -term price and exert down pressure on the torque to navigate in the area around the lower limit of the upward channel at the level of 36.00 $, followed by the EMA of 50 days in $ 35.00.
Additional falls would weaken the impulse of the price in the medium term and lead to the price of silver to navigate in the region around two months at $ 31.65, which was recorded on May 15.
XAG/USD: Daily graphic
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.
