- The price of silver falls abruptly to about 33.00 $ in the face of hopes of de -escalation in the commercial war between the US and China.
- China considers pausar tariffs on some US imports.
- Beijing denies any economic and commercial conversation with the USA.
The price of silver (XAG/USD) collapses more than 1.5% to about $ 33,00 during negotiation hours in North America on Friday. White metal falls sharply from its maximum of three weeks of 33.70 recorded earlier in the day. The asset weakens as investors have become increasingly confident than the United States (USA) and China will reach an agreement soon.
The hopes of a truce in the commercial war between the two greatest powers in the world have increased, since China has declared that it is considering suspending additional tariffs on imports of medical equipment and some US industrial chemicals in the US, Bloomberg reported.
Investors see the scenario as favorable for global economic perspectives. Theoretically, the improvement of global economic perspectives decreases the demand for safe refuge assets, such as silver.
Meanwhile, the US dollar (USD) has bounced after a strong corrective movement on Thursday. The US dollar index (DXY), which follows the value of the dollar against six main currencies, is recovered to about 99.75.
However, the contradictory statements of US President Donald Trump and China about whether both nations have reached the table or not to negotiate trade agreements are expected to keep investors out. Trump has been stating that the discussion between Washington and Beijing about commerce is going well, however, China has denied these comments, saying that there has been no “economic and commercial negotiation between China and the US”.
Technical Analysis of La Plata
The price of silver falls sharply after registering a new maximum of three weeks around $ 33,70. However, the short -term perspective of white metal remains bullish, since it remains above the 20 -day exponential (EMA) mobile average, which quotes around 32.60 $.
The 14 -day relative force (RSI) index struggles to break over 60.00. A new bullish impulse would arise if the RSI breaks above that level.
Looking up, the maximum of March 28, $ 34,60 will act as a key resistance to metal. At the bottom, the minimum of April 11, $ 30.90 will be the key support zone.
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.
