- La Plata remains about $ 33,00, supported by a weak dollar and an improved risk appetite.
- The RSI is flattened despite the bullish tone, suggesting indecision in the short term and possible consolidation.
- A rupture above $ 33.25 points to $ 33.68 and $ 34,00; A fall below $ 32.75 could expose $ 31.89 and $ 31.28.
The price of silver rose 0.95% on Tuesday, since the US dollar ended the session below the 101.00 figure, according to the US dollar index (DXY), which tracks the performance of the value of the dollar against a basket of six currencies. At the time of writing, while the Asian session begins, the XAG/USD quotes at $ 32.92, registering modest profits near the figure of 33.00 $.
XAG/USD price forecast: technical perspective
The technical perspective of La Plata suggests that greater consolidation is coming, with resistance found in the psychological figure of 33.00. However, Momentum indicators such as the relative force index (RSI), despite continuing to be bullish, have become planes as indecision takes over the traders.
For a bullish resumption, buyers need to recover $ 33.00 and exceed the last maximum reached on May 7 in 33.25 $. Once exceeded, 33.50 $ emerges as the following resistance, followed by the maximum of April 28, 33.68. A rupture of this last will expose $ 34.00.
On the contrary, if the XAG/USD slides below the simple mobile average (SMA) of 50 days of $ 32.75, a movement towards the 100 -day SMA is probable at $ 31.89. In case of greater weakness, the next line of defense of the Alcistas would be the 200 -day SMA at $ 31.28.
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.
