- The price of silver could point to the upper limit of the upward channel about 33.50 $.
- The 14 -day RSI staying at level 50 reinforces the ongoing bullish bias.
- The immediate support is observed in the EMA of 50 days around 32.21 $.
The price of silver (XAG/USD) continues to show fortress for fifth consecutive session, quoting around $ 32.30 per Troy ounce during the Asian session on Tuesday. The technical analysis of the daily chart suggests a growing upward trend, with the gray metal moving up into an ascending channel pattern.
The price of silver is maintained above the exponential mobile socks (EMA) of nine and 50 days, indicating a strong short -term impulse. In addition, the 14 -day relative force (RSI) index is located at level 50, reinforcing the active bullish bias.
On the positive side, the XAG/USD torque could aim at the upper limit of the upward channel around 33.50 $. A decisive breakdown above this level could strengthen the upward perspective and pave the way for a new test of the maximum of six months in 34,59 $, last seen on March 28.
The price of silver could find immediate support in the EMA of 50 days about $ 32.21, followed by the nine -day EMA around $ 31.90. A rupture below this level could indicate a weakening of the short -term pricing impulse, potentially carrying the price of precious metals towards the support area of 31.50 $. An additional support is at a minimum of seven months of 28.00, marked on April 7.
XAG/USD: Daily graphic
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.
