- Silver is stable down while the flows to shelter assets are reduced by high fire news between Iran and Israel.
- XAG/USD quote about $ 35.75, lowering 0.46%, caught in Tuesday’s range.
- The price proves a key trend line and the Bollinger band support, a break could expose the level of 34.00 $ below.
La Plata (XAG/USD) is showing moderate price action on Wednesday, sliding modestly down but remaining within Tuesday’s range. At the time of writing, the metal quotes around $ 35.75 during the American session, lowering approximately 0.46% in the day. The contained movement reflects a decrease in the demand for shelter assets, since the signs of relaxation of geopolitical tensions – participating the truce between Iran and Israel – have cooled the recent risk premium that helped take silver to maximum of several years.
The silver is showing early signs of technical fatigue after a strong upward trend of several weeks that saw the metal climb from levels below $ 30 to maximum of 13 years about $ 37.00. One of the main warning signals came from a bearish divergence between the price action and the relative force index (RSI). While the money in cash reached new maximums of several years last week, the RSI reached its maximum point before and since then it has tended down. With the RSI now going down to 56, the bullish impulse seems to be moderated, inviting a cautious benefits by short -term operators.
Today’s price action sees the XAG/USD quoting about $ 35.75, modestly down in the day, while currently proves the lower limit of an upward ascending channel. This structure has supported the bullish impulse since mid -April. This support zone is closely aligned with the Bollinger Media band (SMA of 20 days), currently around $ 35.71. A decisive daily closure below this confluence area could be the first concrete sign that the bulls are losing control.
The Bollinger bands have begun to contract after having expanded sharply during the rebound in La Plata. Such narrowing typically precedes a significant directional movement. If the lower channel support around $ 35.60 –35.70 $ yield could open the door to deeper setbacks about $ 34.00.
Volatility, captured by the true average range (ATR 14), has also decreased to 0.78, suggesting that the explosive movements of early June are giving way to a more measured price action. This could mean that the market is entering a consolidation phase or preparing for a reversal of rupture.
That said, the broader trend remains bullish unless a confirmed break occurs. The operators will be observing whether the bulls can defend this area of ​​technical inflection and bounce around 37.00, or if the weight of the benefits and the reduction of flows to shelter refuge forces a more pronounced correction.
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.
