- The silver remains stable after a modest gain of 0.56% on the previous day.
- The upward trend remains intact, with the price above the 21 -day EMA in 36.91 $.
- The RSI is decreasing from overcompra levels, suggesting a decreasing bullish impulse.
La Plata (XAG/USD) is little changed on Thursday, quoting around $ 37,80 after registering a modest gain of almost 0.56% on Wednesday. The metal remains elevated after marking a maximum of 14 years of 39.13 $ earlier this week, but the impulse has been cooled since then, since cash prices are consolidated below its peak before the US retail sales data of the US are now evaluating whether the silver has enough strength to continue climbing or if a short -term setback is on the horizon.
In the Technical Front, La Plata remains in an established bullish trend, with the price firmly maintaining the exponential (EMA) mobile average of 21 days, currently at 36.91 $. This mobile average continues to act as dynamic support, reinforcing the short -term bullish bias. However, the metal has stagnated just below the key resistance zone about 39.00 -39.13 $, where sellers have emerged and limited the rising attempts.
The Relative Force Index (RSI) is decreasing from near the overcompra zone, now around 63.42, after cash prices played several years earlier this week. This indicates a weakening of the bullish impulse and a possible pause or setback in the rebound, unless new drivers arise. Meanwhile, the ADX (average directional index) remains low in 17.85, indicating a lack of conviction in the strong trend despite the upward trend.
The immediate support is observed around the round number of 37.00, aligning with the 21 -day Ema and marking a key line in the sand for the bullies. A rupture below this level could trigger a deeper setback, exposing the following support at $ 35.50, followed by a stronger demand zone about $ 34.50. Upwards, a sustained movement above $ 39.13 would probably attract new buyer interest, opening the door for a thrust towards the psychological level of $ 40.00 and potentially higher.
SILVER – FREQUENT QUESTIONS
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.
