- La Plata continues to lose ground for the second consecutive day and falls to a minimum of one month.
- The technical configuration favors bassists and supports the perspectives of additional losses.
- Any attempt at recovery could now be seen as a sales opportunity and remain limited.
La Plata (XAG/USD) adds the strong losses of the previous day and attracts some continuation sales for the second consecutive day on Friday. This also marks the fifth day of a negative movement in the previous six and drags the white metal to a minimum of one month, around the region of 31.15 $ during the first half of the European session.
With the last fall, the XAG/USD confirms a break through an upward channel of several months and now seems to have found acceptance below the Fibonacci setback level 50% of the movement from December to March. In addition, the oscillators in the daily chart are deeply maintained in negative territory and are still far from being in the overall area, which suggests that the path of lower resistance for white metal is down.
Therefore, a subsequent fall to levels below $ 31.00, or a confluence support that includes the simple mobile average (SMA) of 200 days and the level of 61.8% of Fibonacci, seems like a different possibility. A convincing rupture below the aforementioned support will be seen as a new trigger for bassists. This would pave the way for an extension of the recent fall pronounced from the region of 34.55 $ -34.60 $, or the maximum of the year reached on March 28.
On the other hand, any recovery above the level of 50% of Fibonacci, around the region of 31.65 $ -31.70 $, could be seen as an opportunity for sale and continue limited near the round brand of 32.00 $, or the point of rupture of the support of the ascending channel. However, some purchase of continuation, which leads to an additional movement above the region of 32.30 $ -32.35 $ (level of 38.2% of Fibonacci), could cause a recovery of short coverage and allow the XAG/USD to recover the mark of 33.00 $.
GRAPH DIARY OF LA PLATA
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.
