- La Plata reaches a new 2025 maximum as tariff tensions raise the demand for safe refuge.
- The bullish impulse remains strong as the white metal rises towards the resistance of 38.00.
- XAG/USD benefits from its double role as safe refuge and industrial metal.
La Plata (XAG/USD) is quoting in a new maximum of the year to date on Friday, since tariff threats and market uncertainty drive the demand for safe refuge assets.
The price of silver is quoting above $ 37.60 at the time of writing, since the bulls seem anxious to test the next level of psychological resistance of 38.00.
As the white metal continues its ascending trajectory, the tariff policies of US President Donald Trump and a weaker US dollar have proven to be prominent promoters of the price action.
Throughout the year, a weaker US dollar and the growing prospects for the Federal Reserve (FED) to reduce interest rates have provided a positive catalyst for both gold and silver.
Since silver benefits from its attractiveness as a sure merchandise and an industrial metal, the current environment has amplified its appeal.
With the XAG/USD, more than 30% appreciate this year, a movement above $ 37.00 and above the maximum of February 2012 of $ 37.49, the metal is positioned among the best performance goods this year.
La Plata extends its rally by $ 38,00 as the bullish impulse gains strength
La Plata (XAG/USD) has extended its bullish impulse, breaking above the maximum of June 37.49 (now serving as support) and reaching a new maximum of the year until the date of $ 37.73 at the time of writing.
The movement reflects a strong purchase interest as the metal approaches the key psychological resistance at 38.00.
Daily La Plata graphics (XAG/USD)
The upward trend remains intact within an ascending parallel channel, supported by the simple mobile average (SMA) of 20 days and 50 days, providing additional support in 36.53 $ and 34.91 $, respectively.
Momentum indicators are also reinforcing the bullish bias, with the relative force index (RSI), climbing to 67, approaching the overcompra territory but still not pointing out exhaustion.
A breakout confirmed above $ 38.00 could expose the area of ​​39.50 –40.00 $, while a ruling in maintaining recent profits could trigger a setback towards the support of 36.50 $.
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.
