- La Plata oscillates in a range about a maximum of several months reached on Tuesday.
- The technical configuration favors the bullies and supports the perspectives of new profits.
- Any corrective sliding could be seen as a purchase opportunity for about $ 30.40.
La Plata (XAG/USD) is consolidated in a range around the 34.00 $ brand during the Asian session on Wednesday and remains close to its highest level since the end of October reached the previous day. The technical configuration, meanwhile, seems inclined in favor of the bullies and suggests that the path of lower resistance for white metal is still upwards.
This week’s rebound from the resistance converted into a support of 33.40, along with positive oscillators in the daily graph, validates the constructive perspective and supports the perspectives of an extension of an upward trend of almost three weeks. Some monitoring purchases beyond the maximum oscillation of the previous night, around the 34.20 $ -34.25 $ region, will reaffirm the positive bias and raise the XAG/USD beyond the intermediate obstacle of 34.50 $ -34.55 $, towards the neighborhood of $ 35.00, or a maximum of several years reached in October.
On the other hand, any corrective setback could continue to find some support near the region of 33.40 $, below which the XAG/USD could accelerate the fall towards the round figure of 33.00 $. A convincing rupture below the latter could pave the way for a fall to the pivotal support of the 100-day exponential (EMA) mobile average, currently set near the area of ​​31.50 $ -31.45 $. This is followed by the support of $ 31.25 -31.20, the $ 31.00 mark and the minimum of the end of February, around the area of ​​$ 30.80.
The impossibility of defending the mentioned support levels could change the short-term bias in favor of the bassists and make the XAG/USD vulnerable to accelerate the fall towards the support of 30.45 $ -30.40 $ en route to the psychological brand of 30.00 $. The white metal could eventually fall to the support of 29.55 $ -29.50 $ and test levels below $ 29.00, or the minimum of the year to date reached in January.
XAG/USD DIARY GRAPH
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.
