- The price of silver is negotiated with caution around $ 34,00, while investors focus on the publication of reciprocal tariffs by US President Trump on Wednesday.
- Trump tariffs are expected to reduce economic growth worldwide.
- The USD index advances slightly before the US ISM manufacturing PMI and Jolts employment offers data.
The price of silver (XAG/USD) is negotiated with caution around $ 34.00 in the American session on Tuesday. The white metal continues to face sales pressure above 34.00 from Friday, since investors seek clarity about the level of tariffs announced by the president of the United States (USA), Donald Trump, Wednesday, or the so -called “Day of Liberation.”
According to the Washington Post, the White House advisors have written a proposal to impose tariffs of 20% to most imports to the USA.
The imposition of significant levies by President Trump is considered to result in important economic clashes worldwide. Such scenario is favorable for safe refuge assets, such as silver.
Investors expect Trump’s tariffs to also impact the US economy, given that the burden of major import rights will fall on national importers. This has climbed the risks of a resurgence of short -term inflationary pressures. The fears of an acceleration in price pressures have led Federal Reserve officials (FED) to maintain a restrictive monetary policy position for a longer period.
Meanwhile, investors expect the data managers index (PMI) index of manufacturing of the US ISM for March and Jolts employment offers data for February, which will be published at 14:00 GMT. The manufacturing PMI is expected to have decreased to 49.5 from 50.3 in February. It is estimated that US employers have published 7.63 million jobs in February, slightly below the previous publication of 7.74 million.
Before the economic data of the US, the US dollar index (DXY), which follows the value of the dollar against six main currencies, lies slightly upward about 104.30.
Technical Analysis of La Plata
The price of silver struggles to advance in its upward movement towards the flat limit of the formation of the graphic pattern of ascending triangle in the daily framework near the maximum of October 22, 34.87 $. The ascending limit of the aforementioned graphic pattern is drawn from the minimum of August 8, 26.45 $. Technically, the ascending triangle pattern indicates indecision among market participants.
The 20 -day exponential (EMA) mobile average about $ 33.40 continues to provide support to the silver price.
The 14 -day relative force (RSI) index bounces above 60.00, suggesting a resurgence in the bullish impulse.
Looking down, the maximum of March 6, 32.77 will act as a key support for the price of silver. Meanwhile, the maximum of October 22, $ 34,87 will be the main barrier.
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.
