- The price of silver is negotiated laterally around 34.00 while investors expect the publication of a detailed plan for reciprocal rates by the US president, Trump, Wednesday.
- Trump’s rates will result in a reduction of global economic growth, including the US.
- Daly’s trust has decreased in his expectations of two interest rate cuts this year.
The price of silver (xag/USD) fluctuates around $ 34.00 in the European session on Monday. The white metal remains stable while investors have remained on the sidelines to have a clear vision of global economic perspectives, with the US president Donald Trump, ready to reveal reciprocal rates on Wednesday.
Donald Trump is prepared to announce reciprocal taxes in the so -called “Liberation Day”, after which the rates will be equivalent to those that other countries charge the US for the same products. The impact of reciprocal rates is expected to be significant in global economic growth. The attractiveness of precious metals, such as silver, increases in the midst of the growing global economic tensions.
Investors expect Trump’s rates to also weaken the economic growth of the US, since the impact of the highest rates will be assumed by US importers. This will also result in a resurgence of inflationary pressures.
The fears of the US economic risks and the acceleration of short -term price pressures have forced Federal Reserve (FED) officials to maintain a restrictive monetary policy guide. On Friday, the president of the Bank of the Fed of San Francisco, Mary Daly, said that her confidence is decreasing in her expectations that there will be two trimmates of interest rates this year. His confidence in the two rates cuts this year was affected after the publication of the data of the Personal Consumption Expenditure Index (PCE) of the United States for February, which accelerated at a faster rate than expected of 2.8% compared to estimates of 2.7% and the previous publication of 2.6%.
Historically, firm expectations on the position of higher interest rates by the Fed weigh on assets without performance, such as silver.
Technical Analysis of La Plata
The price of silver advances towards the flat limit of the formation of the graphic pattern of ascending triangle in the daily framework near the maximum of October 22, 34.87 $. The ascending limit of the aforementioned graphic pattern is placed from the minimum of August 8, 26.45 $. Technically, the ascending triangle pattern indicates indecision among market participants.
The 20 -day exponential (EMA) mobile average about $ 33.30 continues to support the price of silver.
The 14 -day relative force (RSI) index bounces above 60.00, suggesting a resurgence in the bullish impulse.
Looking down, the maximum of March 6, 32.77 will act as a key support for the price of silver. Meanwhile, the maximum of October 22, $ 34,87 will be the main barrier.
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.
