- The silver remains stable on Thursday, supported by a weaker US dollar and lower bond yields.
- Operators point up in the midst of persistent uncertainty about the total elimination of tariffs between the US and China.
- Fed officials remain cautious, pointing out a data -dependent path amid the growing economic ambiguity.
La Plata finished Thursday session practically unchanged, however, it remains close to the weekly maximums of $ 33.65, with the operators ready to push the gray metal up.
XAG/USD cling to $ 33.65 while the uncertainty of the Fed and the fall in treasure yields reinforce precious metals despite hopes of tariff relief
An improvement in the appetite for the risk was sponsored by a decalmous of the tariffs of US President Donald Trump about China, which weighed on silver prices. However, the spokesman of the China Ministry of Commerce urged the US to raise all tariffs on Chinese imports “if you really want to solve the problem.”
The precious metals are still supported by the fall in the yields of the US Treasury bonds, in turn, he weakened the dollar, which, according to the US dollar index (DXY), fell 0.50% to 99.28.
The US economic data showed that the labor market is still solid after the publication of the latest figures for initial unemployment subsidy, which arrived aligned with estimates. The orders of the US durable goods exceeded 2% forecasts in March and grew by 9.2% intermensual due to an increase in transport orders.
A multitude of Fed speakers, headed by Governor Waller, the headlines monopolized. Waller said that it is unlikely that the impact of tariffs in July will be known, adding that the second half of 2025 will bring more clarity. The president of the Fed of Cleveland, Beth Hammack, said that uncertainty is weighing on companies, and if the data justifies it, the next movement of the Fed could be in June.
XAG/USD price forecast: technical perspective
In this context, silver could continue to quote near the maximum of the week, but buyers need to clear key levels of resistance. The first roof would be 34.00 $, followed by the maximum of the year to date (YTD) of 34.58 $. Once these two levels have been exceeded, the operators could point to the $ 35.00 mark.
On the contrary, if the XAG/USD falls below $ 33.00, the vendors will be tempted to try the single mobile (SMA) of 50 days in 32.63 $. Once clear, the next support would be 32.00.
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.
