- The price of silver bounces about $ 32.50 despite the strong fortress of the US dollar.
- The USD wins after the publication of the USM MANUFACTURERO PMI data from the US for April.
- Washington has expressed confidence that it will lose trade agreements with some commercial partners in the coming weeks.
The price of silver (XAG/USD) recovers most of its initial profits and returns about $ 32.50 during negotiation hours in North America on Thursday. The white metal gained ground after registering a new minimum of more than two weeks around $ 31.66, earlier in the day, despite the fact that the US dollar (USD) has extended its two -day recovery.
American dollar today
The lower table shows the percentage of US dollar change (USD) compared to the main coins today. American dollar was the strongest currency against the Japanese yen.
| USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.37% | 0.25% | 1.54% | 0.23% | 0.21% | 0.35% | 0.72% | |
| EUR | -0.37% | -0.12% | 1.13% | -0.17% | -0.14% | -0.02% | 0.33% | |
| GBP | -0.25% | 0.12% | 1.26% | -0.02% | -0.03% | 0.10% | 0.46% | |
| JPY | -1.54% | -1.13% | -1.26% | -1.30% | -1.29% | -1.22% | -0.87% | |
| CAD | -0.23% | 0.17% | 0.02% | 1.30% | 0.00% | 0.12% | 0.48% | |
| Aud | -0.21% | 0.14% | 0.03% | 1.29% | -0.00% | 0.12% | 0.50% | |
| NZD | -0.35% | 0.02% | -0.10% | 1.22% | -0.12% | -0.12% | 0.36% | |
| CHF | -0.72% | -0.33% | -0.46% | 0.87% | -0.48% | -0.50% | -0.36% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the US dollar of the left column and move along the horizontal line to the Japanese yen, the percentage change shown in the box will represent the USD (base)/JPY (quotation).
Technically, a higher US dollar makes the price of silver a face face for investors.
The US dollar index (DXY), which follows the value of the dollar against six main currencies, jumps above 100.00. The dollar is strengthened despite the fact that the data of the USM manufacturing PMI of the United States for April have shown that the activities decreased at a faster rate. The manufacturing PMI dropped to 48.7 from 49.0 in March, but is higher than estimates of 48.0.
Meanwhile, the ISM paid price index, which measures the change in the cost of inputs, expanded at a faster rate to 69.8 from 69.4, but did not reach the estimates of 70.3. It is expected that the increase in input costs will feed consumer inflation. Such scenario will limit the Federal Reserve (Fed) in the reduction of interest rates, which is negative for assets that do not generate performance, such as silver.
Earlier in the day, the price of silver fell sharply since investors expect the fears of additional rates announced by the US president, Donald Trump, have reached their maximum point, since Washington is close to announcing bilateral exchanges with several of its commercial partners soon.
“The initial commercial agreements will be announced in weeks, not in months,” said US trade representative, Jamieson Greer, in Fox News, according to Reuters.
However, the commercial uncertainty between the US and China will keep the decrease in the price of silver limited.
Technical Analysis of La Plata
The price of silver fights to return to a maximum of more than three weeks around 33.70 $. The short -term perspectives of white metal have become uncertain since it falls below the 20 -day exponential (EMA) mobile average, which quotes around 32.65.
The 14 -day relative force (RSI) index falls below 50.00 after failing to break over 60.00, indicating that investors are no longer optimistic.
Looking up, the maximum of March 28, $ 34,60 will act as a key resistance to metal. At the bottom, the minimum of April 11, $ 30.90 will be the key support zone.
GRAPH DIARY OF LA PLATA
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.
