- The price of silver falls vertically below $ 32.00 after the US president announces reciprocal tariffs.
- A significant increase in the import tax on China has weighed in the demand for money.
- Investors expect US NFP data, which will influence the Fed monetary policy perspectives.
The price of silver has dropped almost 5% during negotiation hours in North America on Thursday, testing territory below $ 32.00. The price of white metal has become vulnerable after the president of the United States (USA) Donald Trump revealed a detailed plan for reciprocal tariffs for its commercial partners.
The indicator “Buy the rumor and sell the news” forced the traders to press the sales button for the price of silver. The precious metal was having a good performance, together with gold, in recent months, since investors were increasingly sure that Trump’s tariffs would be inflationary and weigh on economic growth at global level, including USA. Technically, the attractiveness of the silver price increases if investors anticipate an increase in global economic tensions.
The fears of an economic deceleration in the US have also weighed over the US dollar (USD). The US dollar index (DXY), which tracks the value of the dollar against six main currencies, collapses about 101.30, the lowest level seen in six months.
In addition, increased concerns about the demand for silver by industries have also caused their price to fall strongly. On Wednesday, Donald Trump announced an import tax of 34% on China, in addition to the 20% tax already imposed on introducing drugs in the US economy. A significant increase in Trump tariffs on China is expected to affect its manufacturing sector. Such scenario will weaken the demand for silver by Chinese companies, given their application in various industries such as electric vehicles (EV), electronics and solar energy.
Looking ahead, investors will focus on the US non -agricultural payroll data (NFP) for March, which will be published on Friday. Employment data will influence market expectations on the monetary policy of the Federal Reserve (FED).
Technical Analysis of La Plata
The price of silver falls as a castle of cards after not being able to visit the flat edge of the formation of the graphic pattern of ascending triangle in the daily time near the maximum of October 22, 34.87 $. The ascending edge of the aforementioned graphic pattern is drawn from the minimum of August 8, 26.45 $. Technically, the ascending triangle pattern indicates indecision among market participants.
The price of silver slides below the exponential (EMA) mobile average of 20 days, which is around $ 33.35, indicating that the short -term trend has become bassist.
The 14 -day relative force (RSI) index falls about 40.00. An upward impulse would arise if the RSI fails to maintain the level of 40.00.
Looking down, the minimum of February 28, $ 30.82 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.
