- XAG/USD limited at $ 32.73 (50 -day SMA), supported by the 100 -day SMA about $ 31.88 in the middle of a volatile trade.
- RSI flat near neutral; A rupture is needed above $ 33.00
- A fall below $ 32.00 could expose $ 31.65 and the 200 -day SMA at $ 31.23 as bassist pressure accumulates.
The Silver prices fell on Friday, with losses of more than 1%, ready to finish the week in a negative note in the middle of the increase in the yield bonds of the US Treasury, which made a return at the last minute during the US session. The XAG/USD is quoted at $ 32.26 after reaching a daily peak of $ 32.68 at the time of writing.
XAG/USD price forecast: technical perspective
The XAG/USD was consolidated within the simple mobile means (SMA) of 50 and 100 days in 32.73 $ and 31.88 $, respectively, during the last five days, without an apparent bias as shown in the daily chart. The relative force index (RSI), although bassist, remains flat near the neutral line of 50, plane.
This confirms the lack of direction of the gray metal, but buyers could recover control if they exceed a line of descending trend drawn from the peaks from March 28 to April 25, which could break about 33.00 $. A rupture of this last will expose $ 33.50, followed by the 34.00 $ brand. Once surpassed, the next stop would be the peak of October 30 at 34.51 $.
On the contrary, if the XAG/USD falls below $ 32.00, the first support would be the 100 -day SMA, followed by the minimum of May 15, 31.65 $. Once this level was exceeded, the next stop would be the 200 -day SMA at $ 31.23, followed by the figure of $ 31.00.
XAG/USD – Diario Price Graph
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.
