- The silver begins the new week with a softer tone amid the appearance of some USD purchases.
- The technical configuration favors the bassist traders and supports the case for greater depreciation.
- Any attempt at recovery above 200 periods in H4 will probably be sold.
La Plata (XAG/USD) struggles to capitalize on the modest recovery profits on Friday and oscillates in a range at the beginning of a new week, since the sale of US dollar (USD) inspired by the US NFP. UU. It seems to have decreased. The white metal is currently quoted around $ 37,00 and remains within the reach of a minimum of four weeks touched last Thursday.
From a technical perspective, the break this week below an ascending channel support of almost two months, which coincided with the simple mobile average (SMA) of 200 periods in the 4 -hour graph, was seen as a key trigger for the bassists of the XAG/USD. This, together with negative oscillators in the daily and 4 -hour graphics, suggests that the road of lower resistance for merchandise is still down.
Therefore, any subsequent recovery is more likely that in front of a strong barrier near the 37.35 $ region (SMA of 200 periods in the 4 -hour graph). This is followed by the rupture point of the support of the ascending channel, around the region of 37.60 $, which should act as a pivotal point, which, if exceeded, could trigger a recovery of short coverage and allow the XAG/USD to rise to the level of 38.00 on route to the region of 38.30 $ -38.35 $.
On the contrary, the minimum of several weeks, around the area of 36.20, now seems to protect the immediate drop before the round level of 36.00. Some continuation sales will reaffirm the negative bias and drag the XAG/USD to the following relevant support near the 35.50 $ zone. The downward trajectory could extend even more towards the challenge of the psychological level of 35.00.
4 hours of the XAG/USD
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.
