- XAG/USD pressed by the greatest yields of the US Treasury Bonds and the growing belief that the Fed will keep the stable rates.
- The price is consolidated between the 32.00 support and the resistance of $ 32.73; The momentum favors the bassists with the RSI bowing down.
- A break below the 100 -day SMA at $ 31.91 opens the way to $ 31.30 and $ 31.00; The rise is limited by $ 33.00 and 33.68.
The price of silver fell 2% on Wednesday in the middle of the high yields of the US Treasury bonds, since investors seemed confident that the Federal Reserve of the US would not reduce interest rates. At the time of writing, the XAG/USD is quoted at $ 32.20, without changes at the beginning of the Asian session.
XAG/USD price forecast: technical perspective
The price of silver is prepared to consolidate within the range of $ 32.00 – 33.00 $, limited up for the simple mobile average (SMA) of 50 days in 32.73 $ and the decline for the 100 -day SMA at $ 31.91.
From a momentum point of view, the vendors are in charge, as portrayed by the relative force index (RSI). However, the price action dictates that bassists must exceed the 32.00 mark, followed by the 100 -day SMA to aim at lower prices. In that result, the following XAG/USD support would be the 200 -day SMA at $ 31.30. A rupture of this last will present the figure of $ 31.00, followed by the last minimum of the cycle seen at $ 28.33, the minimum of April 7.
On the contrary, if the XAG/USD exceeds the 50 -day SMA, the gray metal would be prepared to test the $ 33.00. Once surpassed, the next stop would be the maximum oscillation of April 24 in 33.68 $ before the figure of 34.00.
XAG/USD – Diario Price Graph
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.
