- La Plata prints a ‘high wave candle’, pointing out indecision in the market after a 5% recovery in four sessions.
- A closure above $ 34.00 keep the bullish impulse intact; The objectives are at the maximum of the year of $ 34.58 and the October 2012 in 35.40 $.
- A rupture below $ 34.00 could trigger a correction towards the 33.51 $ support, with $ 33.00 as the following bearish objective.
The price of silver falls slightly after reaching a daily maximum of $ 34.46, quoting $ 34.02 in the middle of a strong US dollar and the fall in the yields of the US Treasury bonds.
The market mood improved slightly, but the traders are waiting for April 2, the day of the liberation of the United States, in which the US president Donald Trump is expected to announce tariffs. Speculation suggests that the US will apply universal tariffs of 20%.
XAG/USD price forecast: technical perspective
La Plata maintains a bullish bias, despite retiring something while a ‘high wave candle’ is formed. After climbing more than 5% in the last four days, indecision keeps buyers and sellers away from opening new aggressive bets, since they could be waiting for the closing price.
If the XAG/USD closes above 34.00, this could be bullish and pave the way for greater rise. The first resistance will be the maximum of the year of $ 34.58. With a greater strength, the next ceiling level would be $ 35.00, followed by October 2012 at $ 35.40.
On the contrary, if the XAG/USD falls below $ 34.00, the first support will be the minimum of March 31, 33.51 $, followed by the figure of 33.00.
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.
