- The price of silver can test the barrier in the nine -day EMA of 36.16 $.
- The bullish bias is strengthened as the 14 -day relative force (RSI) index remains above level 50.
- The torque finds immediate support around the lower limit of the upward channel at 36.00.
The price of silver (XAG/USD) goes back its recent profits recorded in the previous session, quoting around $ 36.00 per Troy ounce during the first European hours on Tuesday. The technical analysis of the daily chart shows that the price of precious metal is maintained within an ascending channel pattern, which suggests a predominant bullish bias.
In addition, the 14 -day relative force index (RSI) remains positioned above level 50, indicating a persistent bullish perspective. However, the price of silver is maintained below the nine -day exponential (EMA) mobile average, highlighting that the short -term impulse is weaker.
The XAG/USD pair could find its immediate barrier in the nine -day EMA of 36.16 $. A successful rupture above this level would strengthen the impulse of the short -term price and would support the torque to test the $ 37.32, the highest level since February 2012. Additional advances would open the door so that the price of silver explores the region around the upper limit of the ascending channel about 39.50 $.
On the negative side, the price of silver is testing the lower limit of the upward channel around 36.00. A successful rupture below the channel would cause the appearance of a bassist bias and put downward pressure on the XAG/USD torque to test the 50 -day EMA in 34.36 $. A greater decrease would weaken the impulse of the price in the medium term and lead to the price of silver to navigate the region around the minimum of two months at $ 31.65, which was recorded on May 15.
XAG/USD: Daily graphic
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.
