- The metal remains supported above the 20 -day SMA, which also aligns with the midline of Bollinger bands about 36.35 $.
- A rupture above the Bollinger Superior Band about $ 37.00 could pave the way for new maximums of several years.
- The impulse indicators remain constructive, with the RSI about 62 and the ROC recovering at 2.00.
La Plata (XAG/USD) It is quoted with a positive bias on Thursday, keeping stable about 36.75 $ during the American trading session after going back from a maximum intradic of $ 37.07. The price briefly approached its peak of June 18, 37.32 $, a maximum of 13 years, before cutting profits after data from Non -agricultural payrolls (NFP) of the US stronger than expected, although the general technical configuration remains favorable for bulls.
From a technical perspective, the metal remains caught in a narrow range. The silver is consolidating above the single mobile average (SMA) of 20 days, which also serves as the midline of the Bollinger bandsproviding dynamic support around 36.35 $
Bollinger’s bands are beginning to narrow, suggesting that a possible break could be on the horizon. If the price manages to close above the upper band around $ 37,00, it could trigger a renewed bullish impulse, potentially pushing silver towards new maximums of several years beyond $ 37.32.
Impulse indicators are still favorable. The relative force index (RSI) remains elevated about 62, comfortably above the neutral level of 50, indicating a strong bullish impulse but not overexted. Meanwhile, the exchange rate (ROC) has bounced again in positive territory, lastly seen around 2.00, reflecting an increase in purchase interest.
Down, the immediate support is observed at $ 35.50, marking the lower limit of the current trading range, followed by the Bollinger lower band about $ 35.71. Whenever the XAG/USD remains above this area, it is expected that the widest upward trend remains intact.
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.
