- The price of silver gains ground since the daily chart analysis suggests a persistent bullish bias.
- The torque can find its main resistance around the upper limit of the ascending channel at the level of 33.10 $.
- The initial support appears in the nine -day EMA of 32.08.
The price of silver (XAG/USD) recovers its recent losses recorded in the previous session, quoting about $ 32.40 per Troy ounce during the Asian session on Monday. An analysis of the daily chart suggests a continuous bullish trend, since the price of metal moves up within an ascending channel.
The XAG/USD pair continues to quote above the exponential mobile socks (EMAS) of nine and 14 days, indicating a robust impulse in the short term. In addition, the 14 -day relative force (RSI) index remains above 50 level, reinforcing the general upward perspective.
The price of silver can face an initial resistance near the upper limit of the upward channel at the level of 33.10 $, followed by the maximum of four months of 33,40 $, reached on February 14.
Downwards, the support is in the nine -day EMA around $ 32.08, followed by the EMA of 14 days at $ 31.85, and the lower limit of the upward channel at $ 31.60. A rupture below this critical support zone could undermine the upward perspective, potentially exposing the XAG/USD torque to more falls around five months of 28.74 $, recorded on December 19.
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 recess lower interest. 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 the 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.
