- Silver attracts some sellers Intradía after an intradic rebound to a new weekly maximum.
- The technical configuration favors the bearish operators and supports the perspectives of additional losses.
- A movement is needed beyond the obstacle of 50% of Fibonacci to deny negative bias in the short term.
La Plata (XAG/USD) struggles to capitalize on its modest intradic rebound and backed slightly after touching a new weekly maximum, around the 31.30 $ region during Thursday’s first European session. Intradía sale gains impulse in the last hour and drags the white metal below the $ 31.00 brand while operators now wait for US consumer inflation data before opening new directional positions.
From a technical perspective, the XAG/USD seems to have found acceptance above the 38.2% of the recent fall from the maximum of March to a new minimum of the year reached earlier this week. However, the subsequent rising movement stops before the level of 50% Fibonacci. In addition, the oscillators in the daily chart, although they have been recovering from low levels, remain in negative territory. This, in turn, justifies a certain caution before positioning itself for an extension of the weekly upward trend from the region of 28.25 $, or the lowest level since September 2024.
Meanwhile, any additional drop below the level of 38.2% of Fibonacci will probably find some support near the region of 30.55 $. However, some additional sale could make the XAG/USD vulnerable to accelerate the fall towards the psychological brand of $ 30.00 on the route to the level of 23.6% of Fibonacci, around the area of 29.80 $ -29.75 $. The inability to defend the aforementioned support levels would change the short -term bias again in favor of the bearish operators. The white metal could then fall to the area of 29.35 $ -29.30 $ en route to the mark of 29.00 and eventually aim to re-test the minimum of several months, around the region of 28.25 $.
On the other hand, the bulls could now expect a sustained strength above the maximum of daily oscillation, around the region of 31.30 $, which is approaching the level of 50% Fibonacci, before opening new positions. The subsequent upward movement should allow the XAG/USD to recover the 32.00 mark and rise even more towards the level of 61.8% of Fibonacci, around the area of 32.15 $ -32.20 $. The latter should act as a key point, which if it is exceeded decisively will be seen as a new trigger for upward operators and will raise the white metal beyond the intermediate barrier of 32.65 $, towards the round figure of 33.00 $.
4 -hour silver 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.
