- XAG/USD caught in the range of $ 31.50 –33.00 $; Buyers point to the 50 -day SMA at $ 32.73 to recover impulse.
- Moody’s cuts the US debt rating to AA1; DXY falls 0.60% to 100.36, increasing the attractiveness of silver.
- Key support seen in the 100 -day SMA about $ 31.91; A break or break for clarity in the trend is needed.
The price of silver records modest profits of 0.20% on Monday, since the yields of the US Treasury bonds fall and the US dollar loses ground, as indicated by the US dollar index. The XAG/USD is quoted at $ 32.33 after bouncing from the daily minimums of $ 32.24.
The DXY, which tracks the yield of the dollar against a basket of currencies, falls 0.60% to 100.36. The reduction of Moody’s to the US government debt of AAA AA1 stable caused a sale of the US dollar, despite the fact that the US Treasury Secretary, Besent, dismissed the news.
XAG/USD price forecast: technical perspective
Consolidation is the key to silver prices, without buyers or vendors being able to exceed the maximum and minimum of the range of $ 31.50 -33.00.
For buyers to recover control, they must exceed the simple mobile average (SMA) of 50 days at 32.73 $. If it is exceeded, the next stop would be 33.00 $, followed by the following maximum of the cycle in 33,29 $, the May 13 peak.
Down, the 100 -day SMA at $ 31.91 is the first support level after the strong rebound on May 15.
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.
