- The price of silver jumps to about $ 33.20 while the US dollar runs below what was expected after the reduction of the US credit rating.
- Moody’s reduced US credit rating on a step to AA1.
- Investors expect the high fire conversations between Russia and Ukraine in the city of the Vatican.
The price of silver (XAG/USD) reaches a new weekly maximum about $ 33.20 during Wednesday’s American session. The white metal is strengthened while the US dollar (USD) extends its fall due to the erosion of the US credit rating amid high levels of debt and scaled fiscal imbalances.
The US dollar index (DXY), which tracks the value of the dollar against six main currencies, falls to about 99.50, the lowest level seen in two weeks. Technically, a weak US dollar makes the price of silver a value commitment to investors. In addition, concerns about the erosion of the US credit improve the demand for non -generating performance refugee assets, such as silver.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the weakest currency against Japanese and in Japanese.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.49% | -0.30% | -0.57% | -0.51% | -0.54% | -0.56% | -0.48% | |
| EUR | 0.49% | 0.19% | -0.11% | -0.04% | -0.02% | -0.07% | 0.01% | |
| GBP | 0.30% | -0.19% | -0.29% | -0.21% | -0.20% | -0.25% | -0.19% | |
| JPY | 0.57% | 0.11% | 0.29% | 0.05% | 0.04% | 0.00% | 0.09% | |
| CAD | 0.51% | 0.04% | 0.21% | -0.05% | -0.03% | -0.04% | 0.02% | |
| Aud | 0.54% | 0.02% | 0.20% | -0.04% | 0.03% | -0.04% | 0.04% | |
| NZD | 0.56% | 0.07% | 0.25% | -0.00% | 0.04% | 0.04% | 0.07% | |
| CHF | 0.48% | -0.01% | 0.19% | -0.09% | -0.02% | -0.04% | -0.07% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
On Friday, Moody’s reduced the sovereign credit rating of the United States in a step to AA1 from AAA in the midst of concerns about increasing debt levels to about 36 billion $. The qualification agency also warned that debt levels will be extended even more, with US President Donald Trump seeking to approve a new tax cuts bill to comply with his economic agenda.
However, Republican legislators did not support the new tax bill at a closed door meeting in Capitol Hill on Tuesday due to disagreements on higher deductions in state and local tax payments, according to Republican representative Mike Lawler, Reuters reported.
Meanwhile, investors maintain a close monitoring of high -fire conversations between Russia and Ukraine in the city of the Vatican. On Monday, President Trump confirmed immediate conversations of Alto El Fuego between Moscow and Kyiv through a publication in Truth Social, but did not mention any specific period. Trump expressed confidence that conversations would mainly focus on ending the war and not on a high temporal fire. “Russia and Ukraine will begin immediately negotiations towards a high fire and, more importantly, an end to war,” Trump said. The signs of progress in the conversations of Alto El Fuego between Russia and Ukraine towards the end of the war will be unfavorable for refuge assets, such as silver.
Technical Analysis of La Plata
The price of silver has a breakdown of the formation of descending triangle in a daily temporal framework, resulting in a strong upward movement. The short -term white metal trend is bullish since it remains above the exponential (EMA) mobile average of 20 periods, which quotes around $ 32.65.
The relative force index (RSI) of 14 periods ranges within the range of 40.00-60.00, indicating a lateral trend. A new bullish impulse should arise if the RSI breaks above 60.00.
Looking up, the maximum of March 28, $ 34,60 will act as a key resistance to metal. On the negative side, the minimum of April 11, $ 30.90 will be the key support zone.
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.
