- The price of silver earns up to about 36.50 $ as tensions between Israel and Iran have increased the demand for safe refuge assets.
- US President Trump has proposed to meet Iran to stop the war with Israel.
- Investors expect the Fed to maintain interest rates without changes on Wednesday.
The price of silver (XAG/USD) moves up to about 36.50 $ during European negotiation hours on Tuesday. White metal is firmly negotiated as air war between Israel and Iran has increased the demand for safe refuge assets, such as silver.
The Iranian army continues to launch air attacks on Israel despite having requested its pairs of the Middle East to install Trump US President to use his influence on Israeli Prime Minister Benjamin Netanyahu to press for a high immediate fire.
Meanwhile, the president of the United States (USA), Donald Trump, has asked Vice President JD Vance and the Middle East Envoy to offer to meet the Iranians this week outside the G7 meeting, the New York Times reported.
This week, the Federal Reserve Monetary Policy announcement (FED) on Wednesday is also a key trigger that will contribute to directing the new movement in the price of silver.
According to the CME Fedwatch tool, the Fed is expected to maintain stable interest rates in the current range of 4.25%-4.50%.
Investors will look for clues about when the Fed will begin to reduce interest rates. A higher interest rates posture for longer by the Fed is unfavorable for assets without yield such as silver.
At the time of publication, the US dollar index (DXY) is negotiated laterally around 98.20.
Technical Analysis of La Plata
The silver price rally pauses after reaching a new maximum in more than a decade around 36.90 $. However, the short -term perspective of white metal remains bullish, since the 20 -day exponential mobile average (EMA) is inclined to rise, currently around $ 34.63.
The 14 -day relative force index (RSI) goes back about 60.00 after having been overcompiled. The probabilities are in favor of the RSI resuming the upward movement, assuming that the short -term trend is upward.
Looking up, the psychological level of $ 40.00 will be the main resistance for the price of silver. Downwards, the maximum of October 22, 34,87 $ will act as a key support for the asset.
GRAPH DIARY OF LA PLATA
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.
