- The price of silver rises to around $ 36.20 in the first bars of the European session on Monday, with an increase of 0.55% in the day.
- The positive Perspective of La Plata prevails above the 100 -day key EMA with the RSI Alcista indicator.
- The immediate resistance level arises at 36.84 $; The first level of support to observe is $ 35.28.
The price of silver (XAG/USD) advances around 36.20 $ during the early European session on Monday. The operators increase their bets that the US Federal Reserve (Fed) will cut the rates more times this year and possibly before expected. This, in turn, weighs on the US dollar (USD) and supports the price of the merchandise called in USD, since a weaker USD makes silver cheaper for foreign buyers.
Technically, the constructive perspective of silver is maintained, since the white metal is well backed above the 100 -day exponential (EMA) mobile average in the daily chart. The bullish impulse is reinforced by the relative force index (RSI), which is located above the midline about 57.40, showing an upward impulse in the short term.
On the positive side, the first upward barrier for the XAG/USD is at 36.84 $, the maximum of June 26. A decisive breakdown above this level could collect more impulse and point to $ 37.40, the upper limit of the Bollinger band. Further north, the next level of resistance is observed at the psychological level of 38.00.
In the bearish case, the minimum of June 24 at $ 35.28 acts as an initial support level for silver. A rupture of this level could drag the metal to $ 34,85, the lower limit of the Bollinger band. The additional filter to be observed is $ 33.60, the 100 -day EMA.
Daily silver 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.
