- The price of silver recovers positive traction at the beginning of a new week after the modest fall on Friday.
- The technical configuration seems inclined in favor of the bullies and supports the perspectives of new profits.
- Any corrective setback towards the level of $ 32.00 could be seen as a purchase opportunity.
La Plata (XAG/USD) attracts some buyers in falls at the beginning of a new week and touches an intradic maximum, around the 32,80 $ area during the Asian session. However, the white metal is maintained below the level of 33.00 and a maximum of almost two weeks reached last Thursday, which justifies a certain caution for upward operators.
From a technical perspective, the XAG/USD now seems to have found acceptance above the 61.8% fibonacci recoil level of the recent fall from the maximum of March to a new minimum of the year reached earlier this month. In addition, the oscillators in the daily chart have begun to gain positive traction and support the perspectives of a short -term appreciative movement.
However, it will still be prudent to expect sustained strengthening above the level of $ 33.00, or the level of 78.6% of Fibonacci, before opening new bullish positions. The XAG/USD could then accelerate the positive impulse towards the area of ​​33.20, en route to the next relevant obstacle near the region of 33.50 $ -33.55 $ and the neighborhood of 34.00 $, or a maximum of several months reached in March.
On the other hand, the minimum of Friday, around the area of ​​32.10 -32.05 $, or the level of 61.8% of Fibonacci, could continue to act as an immediate support. Any additional drop could be seen as a purchase opportunity and remain limited near the area of ​​31.35 $ -31.30 $, or the 50% Fibonacci level. However, a convincing rupture below could cause technical sales and make the XAG/USD vulnerable.
The subsequent additional movement could drag the XAG/USD below the round level of $ 31.00, towards the area of ​​$ 30.55, or the level of 38.2% of Fibonacci. The descending trajectory could extend even more towards the psychological level of $ 30.00 en route to the region of 29.55 $ (23.6% of Fibonacci). The latter should act as a key point, which if it breaks could change the bias in favor of the bassists.
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.
