- La Plata triggers more than 1%, exceeding $ 33.00 for the first time since April in the middle of a renewed demand for safe refuge.
- Confirmed technical rupture, with the XAG/USD exceeding the 50 -day SMA and a key resistance trend line about $ 32.75.
- The impulse favors the bullies, since the RSI tends up, pointing out a potential for more profits towards 33.50 and 34.00 $.
- The downward risk is limited to the 33.00 support; The inability to maintain it could expose the 100 -day SMA at $ 31.98.
The price of silver shot on Tuesday, exceeding the 33.00 mark per ounce Troy as the US dollar weakened in all areas. The uncertainty about US commercial policies, the reduction of US government debt by Moody’s and the imminent increase in the US budget deficit fed the demand for the attractiveness of safe gray metal shelter.
XAG/USD price forecast: technical perspective
From a technical perspective, silver is listed laterally, although slightly inclined up. Buyers who exceeded the single mobile average (SMA) of 50 days at $ 32.75 opened the door to overcome the 33.00 mark while pointing to a test of the figure of 33.50 $. It is worth noting that the impulse exceeded a line of resistance trend drawn from the maximum of April and May, which were broken around 32.70/85 $, confirming the continuation of the trend.
The relative force index (RSI) favors buyers. Therefore, if the RSI continues to tend up, confirm the continuation of the ongoing upward trend.
On the other hand, the Silver’s key support level is 33.00. A rupture below could send to the XAG/USD downward to the 100 -day SMA at $ 31.98, before trying the 200 -day SMA at $ 31.30.
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.
