- The price of silver earns some positive traction and breaks a three -day streak of losses to a minimum of several weeks.
- Bassist technical support supports the prospects for sales at higher levels.
- A sustained movement is needed above the level of 34.00 to cancel the negative bias in the short term.
La Plata (XAG/USD) extends the positive rebound of the previous day from the area of ​​$ 31.65, or a minimum of almost three weeks, and wins some traction during the Asian session on Friday. The white metal rises again above $ 32.00 in the last hour and, for now, there seems to have broken a three -day run streak, although the technical configuration justifies a certain caution before positioning for new profits.
The sustained rupture of the previous day below the single mobile average (SMA) was seen as a key trigger for bassists. In addition, oscillators in daily and 4 -hour graphics have been gaining negative traction and suggest that the least resistance path for the XAG/USD is down. Therefore, any upward movement could continue to be seen as an opportunity for sale and remain limited.
The 32.80 $ area could now act as an immediate barrier before the round level of $ 33.00. However, some additional purchase could trigger a short coverage movement and raise the XAG/USD to the obstacle of 33.70 $. This is followed by the round level of $ 34.00, which if the negative perspective in the short term and changed the bias in favor of the bulls is decisive.
On the other hand, the 32.25 $ -32.20 region now seems to offer immediate support before the level of 32.00. The subsequent fall could drag the XAG/USD to the minimum of the previous night, around the area of ​​$ 31.65. A convincing rupture below the latter could drag the white metal at levels below $ 31.00, or the 200-day SMA, en route to the intermediate support of 30.55 $ -30.50 $ and eventually towards the psychological level of $ 30.00.
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.
