- The price of silver corrects up to about $ 32.50 while the US dollar attracts some offers for progress in commercial conversations between the US and Japan.
- The president of the Fed, Powell, supports that interest rates remain unchanged until the Central Bank obtains greater clarity.
- The tariff war between the US and China will keep the price of silver limited.
The price of silver (XAG/USD) falls sharply to about $ 32.50 in the European session on Thursday after not being able to extend a 10 -day recovery above the key resistance of 33.00 $. The white metal corrects while the US dollar (USD) struggles to gain ground near its recent minimums. The dollar index (DXY), which follows the value of the dollar compared to six main currencies, attracts some offers about its minimum of 99.00.
The USD index bounces slightly since decent progress in negotiations on a commercial agreement between the United States (USA) and Japan has relieved part of uncertainty about internal economic perspectives. “A great honor to have met with the Japanese delegation on trade. Great progress!” The US president, Donald Trump, wrote on a publication on the Truth.Social platform on Wednesday.
This seems to be a significant sign that Trump wants favorable bilateral exchanges instead of heavy reciprocal tariff policies. More positive results of Washington’s commercial negotiations with other commercial partners will be favorable for the US dollar. Such scenario will reduce global economic uncertainty, which would lead to a decrease in the demand for safe refuge assets, such as silver.
In addition, slightly aggressive comments from the president of the Federal Reserve (FED), Jerome Powell, about monetary policy perspectives have also forced operators to take benefits in the price of silver. On Wednesday, Powell said in a speech at the Chicago Economic Club that Fed seeks more clarity about economic perspectives before making settings in politics. The support of the Fed to a restrictive monetary policy position is unfavorable for assets without performance, such as silver.
Meanwhile, the escalation of the commercial war between China and the US will keep the price of silver limited. Beijing has shown disposition for commercial conversations with Washington, but with mutual respect and understanding.
Technical Analysis of La Plata
The price of silver is maintained above the exponential mobile (EMA) average of 20 days about 32.28 $, which suggests that short -term perspectives are bullish. The white metal aims to review the maximum of October 22, 34.87 $.
The 14 -day relative force index (RSI) shows a V -shaped recovery after being oversized below 30.00. The momentum oscillator is expected to find resistance about 60.00.
A new rising impulse would appear in the counterweight if the price of silver breaks above the maximum of April 16, 33.12. This movement will unlock objectives of the maximum of October 22, $ 34,87 and a maximum of more than a decade of $ 35.50.
On the other hand, a downward movement in the price of silver below the minimum of April 14, $ 31.74 will present it to a minimum of April 11, 30.90 $, followed by the psychological level of $ 30.00.
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.
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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.
