- Silver can fluctuate around the minimum of eight months of 28.00, lasting on April 7.
- The 14 -day RSI has fallen below the 50 mark, pointing out an increase in the bearish impulse.
- The initial resistance could arise near the nine -day EMA in $ 32.46, which is closely aligned with the 50 -day EMA in 32.47 $.
The price of silver (XAG/USD) is extending its losses per second consecutive session, quoting around $ 31.90 per Troy ounce during the Asian hours of Thursday. The technical analysis of the daily graphic indicates a weakening of the upward perspective, since the price of precious metal has broken below the pattern of ascending channel.
The 14 -day relative force (RSI) index has fallen below level 50, indicating a growing bearish bias. In addition, the price of silver has fallen below the exponential mobile socks (EMA) of nine and 50 days, further highlighting the decrease in the strength of its short -term bundle impulse.
At the bottom, the price of silver could navigate the region around the minimum of eight months of 28.00, marked on April 7.
The XAG/USD torque can initially point to the resistance near the nine -day EMA in $ 32.46, closely aligned with the 50 -day EMA in 32.47 $. A decisive rupture above these levels could reinforce the bullish perspective, racing the way for silver to try the maximum of six weeks of 33.69 $, marked on April 24.
A new breakout beyond this point could attract an additional purchase interest, potentially carrying the price for a maximum of seven months of $ 34,59, seen for the last time on March 28.
XAG/USD: Daily graphic
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.
