- The silver falls below the minimum last Friday, pointing to support at $ 31.22 (SMA of $ 100 and 50 days).
- A break below $ 31.00 could expose the 200 -day SMA at $ 30.50.
- The RSI tends down, pointing out a weakening of the bullish impulse.
The price of silver falls more than 1.20% on Monday even though the yields of the US Treasury bonds fall and the US dollar records minimal profits. At the time of writing, the XAG/USD is quoted at $ 32.08 after reaching a maximum of $ 32.66.
XAG/USD price forecast: technical perspective
The price of silver has fallen below the minimum of last Friday of 32.11, with sellers pointing to the $ 31.00 zone. If the XAG/USD closes daily below $ 32.00, look for proof of a strong support in the confluence of simple mobile average (SMA) of 100 and 50 days at $ 31.22. A rupture of this last will expose $ 31.00 the Troy ounce and clear the way to challenge the 200 -day SMA at $ 30.50.
The relative force index (RSI) points down to indicate that bulls have lost impulse. However, the RSI remains above its neutral level, indicating that bears are not out of danger.
Therefore, if the XAG/USD rises above $ 32.50, the next resistance would be the peak of $ 32.76 of March 6, followed by the level of 33.00 $. Bulls could challenge the level of 33.39 $ of February 14, before 34.00 if it is exceeded.
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
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.
