SILVER PRICE ANALYSIS: XAG/USD BACK FROM THE Maximum 4 days, below $ 34

  • La Plata decoced 0.32% after reaching $ 33.92, pressured by the rebound of the US dollar despite the recent upward impulse.
  • The RSI suggests that the bulls can try another thrust above 34.00 to the key resistance in $ 34.86.
  • A break below $ 33.00 exposes the support at $ 32.66, followed by the 50 -day SMA about $ 32.04.

The price of silver decreases 0.32% after reaching a maximum of four days of $ 33.92. At the time of writing, the XAG/USD is quoted at $ 33.60, undermined by the fortress of the US dollar, which has registered solid profits.

XAG/USD price forecast: technical perspective

After registering a solid rebound on Tuesday, La Plata failed to break the 34.00 mark, which opened the door to the sellers, limiting the advance of the gray metal towards challenging peaks, about 34.23 $.

The momentum favors the increase of the XAG/USD, as indicated by the relative force index (RSI), which is about to overcome the previous peak. Therefore, a greater short -term bullish impulse is expected.

The first XAG/USD resistance would be the maximum of March 26 in 33.92 $. Once exceeded, the next stop would be the figure of 34.00, followed by the monthly peak last October at 34.86.

On the contrary, if the XAG/USD falls below $ 33.00, the immediate support appears in the minimum of March 21, 32.66 $. Once surpassed, the next stop is the single mobile average (SMA) of 50 days at 32.04 $.

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

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