Silver price forecast: the XAG/USD struggles to stay below the 36.00 $ brand; bassists seem not compromised

  • The price of silver meets new sales and slows the recovery of the previous day from a minimum of several days.
  • The mixed technical configuration justifies a certain caution before positioning for additional losses.
  • A sustained strength is needed above 37.00 to cancel any negative bias in the short term.

La Plata (XAG/USD) has difficulty capitalizing on the good rebound from the previous day from the 35.40 $ or a minimum of several days and attracts new sellers during the Asian session on Tuesday. White metal currently quotes around the region of $ 35.85, with a 0.70% drop in the day.

From a technical perspective, the histogram of convergence/divergence of mobile socks (MACD) and the signal line in the daily chart have turned down. However, the relative force index (RSI, 14) daily remains above 50, which justifies a certain caution for XAG/USD bassists and before positioning itself for deeper losses. Therefore, any subsequent fall could continue to find a decent support near the horizontal zone of $ 35.50 -35.40 $.

In the context of last week’s failure near the brand of 37.00, a convincing break below the aforementioned support could cause some technical sales and make the XAG/USD vulnerable to accelerate the fall towards the psychological brand of 35.00 $. Some continuation sales could drag the merchandise even more towards an intermediate support near the area of ​​$ 34.75 en route to the following relevant support near the 34.45 $ region.

On the other hand, any movement beyond the round figure of 36.00 could now face some obstacle near the 36.20 region. A sustained strength beyond the latter could allow the XAG/USD to make a new attempt to conquer the 37.00 mark and re-test the highest level since February 2012, around the region of 37.30 $ -37.35 $ reached earlier this month. The subsequent upward movement should pave the way for an extension of a bullish trend of almost three months.

Daily graphic silver

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

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