- La Plata is limited by the 50 -day SMA in $ 32.68 despite a maximum intradic of $ 32.93; The RSI remains flat near neutrality.
- A rupture above $ 33.00 could open the road to $ 33.68 and $ 34.00; The downward risk below $ 32.22 points to $ 31.80 and $ 31.19.
- The feeling of the market is promoted by the commercial agreement between the US and the United Kingdom and the hopes of de -escalation in the relations between the US and China before the weekend conversations.
The price of silver remained firm on Thursday, since the appetite for the risk improved with the news of a commercial agreement between the US and the United Kingdom, along with the hopes that the tensions between the US and China could decrease, since the delegations of both countries would meet in Switzerland this weekend. At the time of writing, the XAG/USD is quoted at $ 32.44, with a fall of 0.15%.
XAG/USD price forecast: technical perspective
The price of silver is quoting below the simple mobile average (SMA) of 50 days in 32.68 $, a key technical resistance level that limited the progress of the metal despite reaching a daily maximum of $ 32.93. The momentum shows the lack of commitments of buyers and vendors, as indicated by the relative force index (RSI), which is located near its neutral line of 50, maintaining flat. That said, it is likely that the XAG/USD remains lateral in the short term.
For a bullish continuation, the XAG/USD must exceed the 50 -day SMA and the figure of 33.00. Once achieved, the next ceiling level will be a daily maximum of April 25 in 33.68 $, followed by $ 34.00. On the contrary, if the silver falls below $ 32.22, look for a 100 -day SMA test at $ 31.80, before the 200 -day SMA at $ 31.19.
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.
