- The price of silver goes back up to about $ 33.30 with hopes of de -escalation in the commercial war between the US and China.
- The demand for silver as an industrial metal will increase if the US and China end the tariff war.
- China wants the US to cancel unilateral tariff measures before sitting at the table.
The price of silver (XAG/USD) goes back up to about $ 33.30 during negotiation hours in North America on Thursday, from a maximum of almost three weeks of $ 33.70 previously registered in the day. The white metal corrects as investors become optimistic about a significant decalsed in the commercial war between the United States (USA) and China.
The confidence of investors in the normalization of commercial relations between the two greatest powers in the world increased after the US president Donald Trump, to ensure that an agreement with Beijing will be reached. “The discussions with Beijing are going well, and I think we will reach an agreement,” Trump said Tuesday.
In addition, US Treasury Secretary Scott Besent has indicated that both nations can reduce additional tariffs recently taxed. “I do not think that any of the parties believes that the current levels of tariffs are sustainable, so I would not be surprised if they go down in a mutual way,” Besent said on Wednesday.
A report by the Wall Street Journal (WSJ) showed on Wednesday that the White House can reduce additional import tariffs approximately between 50% and 65%.
Meanwhile, China has given an ultimatum to the US to “completely cancel all unilateral tariff measures” if you want commercial conversations, according to a spokesman for the Chinese Ministry of Commerce, Financial Times (FT) reported.
The positive comments of Washington to solve commercial disputes between the US and China have decreased the fears of a global economic turbulence. Theoretically, the scenario weighs on the demand for sure silver price refuge. However, the improvement of relationships between them increases the demand for silver as an industrial metal.
La Plata has applications in various industries, such as electric vehicles (EV), electronic alliances, energy and cables, mining, etc.
Technical Analysis of La Plata
The price of silver proves the consolidation rupture region around $ 33,10 formed in the daily time frame. The 20 -day exponential (EMA) mobile average about $ 32.55 continues to provide support to the silver price.
The 14 -day relative force (RSI) index reaches about 60.00. A new bullish impulse would arise if the RSI breaks above 60.00.
Looking up, the maximum of March 28, $ 34,60 will act as a key resistance to metal. Downwards, 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.
