- La Plata remains stable about a maximum of several months reached this Friday.
- The bullish technical configuration supports the perspectives of greater appreciation.
- Any setback could be seen as a purchase and remain limited opportunity.
La Plata (XAG/USD) reaches its highest level since the end of October 2024 during the first half of the European session on Friday and currently quotes around $ 34.00, with an increase of almost 0.30% a day. However, the bulls choose to wait for the US Personal Consumption Expenditure Index (PCE) to obtain clues on the Federal Reserve (Fed) rates clippings and before opening new positions.
From a technical perspective, the strong positive movement observed since the beginning of 2025 has been throughout an ascending channel. In addition, the oscillators in the daily chart remain comfortably in positive territory and are still far from being in the overcompra zone. This, in turn, favors the bullies and suggests that the path of lower resistance for the XAG/USD is upwards.
That said, it will be prudent to wait for a sustained movement beyond the resistance of the trend channel before positioning for additional profits towards the re-provointed of a maximum of several years, around the area of 34.85 $ reached in October. Some continuation purchases will be seen as a new trigger for the bullies and will prepare the stage for an extension of a well -established upward trend of several months.
On the negative side, any corrective setback could now be seen as a purchase opportunity and it is more likely to remain damping near the round figure of 34.00. However, a convincing rupture below could cause some technical sales and drag the XAG/USD to the following relevant support near the 33.50 $ en route to the level of $ 33.00 and the minimum last week, around the 32.65 $ area.
Daily graphic silver
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.
