- The XAG/USD extends its profits for third consecutive session, keeping about $ 38,60 after reaching a new 14 years of 39.13 $ earlier today.
- The growing geopolitical uncertainty and the fears of a commercial war are promoting the demand of investors for precious metals, helping silver to overcome despite high price levels.
- Attention focuses on US CPI data scheduled for Tuesday, which could influence Federal Reserve (Fed) expectations and affect the short -term address of silver prices.
La Plata (XAG/USD) extends its winning streak for the third consecutive day on Monday, climbing to new 14 -year maximum of about $ 39.10, in the midst of growing global commercial tensions and renewed flows towards refuge assets. The feeling of the market deteriorated after the US president, Donald Trump, added to the European Union (EU) already Mexico to his growing list of tariff objectives, threatening to impose 30% of rights over their imports as of August 1. This movement has increased the fears of a broader commercial war, which has led investors to seek refuge in precious metals as coverage against uncertainty.
At the time of writing, La Plata (XAG/USD) is around 38.60 $ during American negotiation hours, retreating slightly from the maximum day of 39.13 $ previously marked in the European session. The Maximum IntradÃa also is close to the highest level of metal since September 2011.
From a technical point of view, La Plata (XAG/USD) remains well supported within an ascending parallel channel that has remained intact since the beginning of April, reinforcing the broader upward structure. The recent rupture above the resistance zone of 37.00 -37.30 $ marks the end of a consolidation phase of several weeks and indicates a renewed bullish impulse. The price is now negotiated comfortably above the exponential mobile (EMA) average of 9 days in 37.36 $, which suggests that buyers still have control.
The Relative Force Index (RSI) has risen to overcompra territory, currently positioned around 73.15, which can limit immediate profits or trigger minor setbacks. That said, the overcompra signal in a strong trend can also be seen as a confirmation of the bullish impulse. Meanwhile, the average directional index (ADX) stands at 15.65, indicating that the strength of the trend is still developing despite the strong rebound.
Looking ahead, a sustained fortress above $ 38.50 could pave the way for a psychological level proof of $ 40.00, with the upbeat impulse probably persisting while the silver is maintained above its recent levels of rupture. Down, the initial support is seen about $ 37.30, followed by the old minimum of the range around $ 35.50, which also closely aligns with the lower limit of the upward channel about $ 35.25. A decisive breakdown below this area could point out a deeper corrective movement.
Meanwhile, operators will maintain a close monitoring of the next US Consumer Price Index (CPI) that will be published on Tuesday, which could influence the expectations of interest rates of the Federal Reserve and, in turn, impact the short -term direction of the silver.
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.
