- The price of silver fails to take advantage of the strong up of the previous day.
- A rupture through a short -term descending channel favors bullies.
- Falls could be seen as a purchase opportunity near the 32.65 $ area.
La Plata (XAG/USD) goes back slightly after an increase in the Asian session towards the 33.20 $ area, or more than a week, and erodes part of the strong rise of the previous day. White metal is currently quoted around the 33.00 mark, with a fall of 0.30% in the day, although the technical configuration favors the bullies.
Tuesday’s closure above the 33.00 mark confirmed a break through the upper limit of a descending channel of several weeks, which constituted the formation of a bullish flag pattern. This adds to the recent repeated bounce from the single mobile average (SMA) of 100 days and validates the constructive configuration. In addition, the oscillators in the daily chart have begun to move in positive territory and suggest that the least resistance path for the XAG/USD is upwards.
Therefore, any posterior landslide could be seen as a purchase opportunity and remain limited near the horizontal zone of 32.65 $. However, some follow -up sale would exhibit the 100 -day SMA, currently located just above the round 32.00 brand. The subsequent fall could drag the XAG/USD to the descending channel support, around the 31.40 $ zone. A convincing rupture below the latter would cancel the positive perspective and change the bias in favor of the bassists.
On the other hand, the impulse beyond the peak of the Asian session, around the 33.20 $ area, could face some resistance near the region of 33.60 $, above which the XAG/USD could aspire to recover the round brand of 34.00 $. The impulse could extend even more and eventually raise the white metal to the maximum of the year to date, around the 34.55 $ -34.60 $ area reached in March.
Daily graphic silver
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.
