- La Plata is stabilized above $ 37,85 after bouncing from a weekly minimum of $ 37.50.
- The RSI indicates a strong impulse; Bulls point to resistance at 38.50 $ and 39.12 $.
- A fall below $ 37.00 could trigger a setback to the levels of 36.78 $ and $ 36.00.
The price of silver advances at the beginning of the American session on Thursday, rising 0.07% after registering profits of more than 0.50% on Wednesday, thanks to weaker data than expected that the precious metals rose. At the time of writing, the XAG/USD is quoted at $ 37.90, which is below the figure of 38.00.
XAG/USD price forecast: technical perspective
The silver has a bullish bias even though the precious metal fell to a weekly minimum of 37.50 $ before stabilizing above $ 37.85. In terms of impulse, the relative force index (RSI) has a bullish bias, indicating that buyers are in charge.
That said, if the XAG/USD exceeds $ 38.00, this clears the way for more profits. The next resistance would be the figure of 38.50 $, followed by the maximum of the year to date (YTD) of 39.12 $, before $ 39.50 and $ 40.00.
On the contrary, if the silver falls below $ 37.00, the vendors could push prices towards the 20 -day SMA at 36.78 $, before trying the figure of $ 36.00.
XAG/USD – Diario price chart
SILVER – FREQUENT QUESTIONS
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.
