- The price of silver maintains profits to uncertainty about the global economic perspective due to the commercial war led by Trump.
- Individuals in the US are cautious to economic perspectives under Trump’s leadership.
- Investors expect the US PCE inflation to obtain a new perspective on the monetary policy of the Fed.
The price of silver (XAG/USD) is kept in profits about $ 33,80 at European negotiation hours on Wednesday. White metal shows resilience while market participants are cautious to the economic perspective of the United States (USA) under the leadership of President Donald Trump.
The fears of the imposition of possible tariffs by Donald Trump on April 2 have affected the trust of households in the economy. The US Board Conference reported Tuesday that consumer’s confidence, an advanced indicator of individuals in economic perspectives, fell to 92.9, significantly below the 100.1 observed in February. The high economic uncertainty scenario often leads to an increase in the demand for secure asset refuge that does not generate performance, such as silver.
However, Trump has suggested that not all imminent tariffs will take effect on April 2, since he could grant “many countries” exemptions in tariffs.
Meanwhile, the dollar index (DXY), which follows the value of the dollar against six main currencies, lies laterally around the maximum of three weeks of 104.50. The US dollar is expected to operate cautiously, since investors anticipate that Trump’s economic policies could result in an economic deceleration and a resurgence of inflationary pressures in the US economy.
This week, the main trigger for the US dollar will be the US Personal Consumption Expenditure Index (PCE) for February, which will be published on Friday. Inflation data will influence market expectations on the monetary policy perspective of the Federal Reserve (FED). The price of silver has an inverse relationship with the degree of interest rates in the US
Technical Analysis of La Plata
The price of silver strives to visit the flat limit of the formation of the graphic pattern of ascending triangle in the framework of daily near the maximum of October 22, 34.87 $. The ascending limit of the aforementioned graphic pattern is placed from the minimum of August 8, 26.45 $. Technically, the ascending triangle pattern indicates indecision among market participants.
The 20 -day exponential (EMA) mobile average about $ 33.10 continues to provide support to the price of silver.
The 14 -day relative force (RSI) index bounces above 60.00, suggesting a resurgence in the bullish impulse.
Looking down, the maximum of March 6, 32.77 will act as a key support for the price of silver. Meanwhile, the maximum of October 22, $ 34,87 will be the main barrier.
GRAPH DIARY OF LA PLATA
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.
