- La Plata recovers positive traction after the back of the previous day from the monthly peak.
- The bullish technical configuration supports the perspectives of an additional short -term appreciation movement.
- The falls below the level of 33.00 $ could still be seen as a purchase opportunity and remain limited.
La Plata (XAG/USD) is based on the rebound from the previous day from the 32,60 $ area and wins some positive traction on Friday. The impulse extends through the early European session and elevates the white metal to a new daily peak, around the region of 33.25 $ -33.30 $ in the last hour.
Looking at the widest panorama, the appearance of purchases in the falls validates this week’s break through the upper end of a descending channel of almost a month, which was seen as a key trigger for upward operators. In addition, the oscillators in the daily chart have begun to gain positive traction, which, in turn, supports the perspectives of an additional short -term appreciation movement for the XAG/USD.
Some purchase of continuation beyond the resistance zone of 33.65 $ -70 $, or the highest level since the beginning of April played on Thursday, will reaffirm the constructive configuration and allow the XAG/USD to recover the round level of $ 34.00. The subsequent movement has the potential to raise the white metal back to the maximum of the year to date, around the 34.55 $ -34.60 $ area touched in March.
On the contrary, the weakness below the level of 32.00 could still be seen as a purchase opportunity and continue to be damping near the minimum of XAG/USD night oscillation, around the 32.60 $ region. The latter should act as a fundamental point, which if it breaks decisively could expose the support of the simple mobile average (SMA) of 100 days, currently located just above the level of 32.00 $.
Some sale could make the XAG/USD vulnerable to prove the lower limit of the aforementioned trend channel, currently around the 31.40 $ region. A convincing rupture will cancel the positive perspective and change the short -term bias in favor of the bearish operators, which, in turn, should pave the way for a significant decrease.
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.
