- La Plata exceeds $ 36.90 and resumes its broader positive trend.
Precious metals shoot at the demand for safe refuge in geopolitical tensions.
The next XAG/USD resistance area is now at $ 37.85.
La Plata (XAG/USD) broke above the roof of a descending channel since the top of the beginning of June, favored by a greater demand for safe refuge in risk aversion markets, and has confirmed a bullish flag.
The fundamental context remains favorable with preferred safe assets as the war between Israel and Iran extends, with the US president Trump tempted to intervene and turn it into a regional conflict of unpredictable consequences. It is likely that precious metals are raised until geopolitical tensions decrease.
Today’s approach is in the Federal Reserve, which is very likely to maintain interest rates without changes, but will publish new economic projections and interest rates that may have a significant impact on the US dollar.
XAG/USD: The next resistance is at 37.85 $
From a technical perspective, the 4 -hour graph shows that the Tar
The next level of resistance is now to the extension of Fibonacci of 161.8% of the correction from June 9 to June 11, which is at $ 37.85. Above here, the next objective is the area between the extension of 261.8% of the rank mentioned, at 39.35 $, and the measured objective of the bullish flag, at 39.55 $.
The 4 -hour RSI is reaching overcompra levels, which could lead to some consolidation or correction. The previous resistance, at 36.90 $, and the line of reverse trend, now at 36.50 $, will probably act as support.
XAG/USD 4 -hour Graphic
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.
