- The price of silver rises to about $ 30.50 to fears of a possible commercial war between the US and China.
- The president of the USA, Trump, threatened to impose additional 50% tariffs on China for reciprocal rights.
- Investors expect the US inflation data, which will influence the monetary policy perspectives of the Fed.
The price of silver (XAG) advances about $ 30.50 during negotiation hours in North America on Tuesday. White metal is strengthened as its appeal as a safe refuge has increased, with operators increasingly concerned about the perspective of commercial relations between the United States (USA) and China.
Earlier in the day, a spokesman for the Ministry of Commerce of China warned that the new tariff threats of the US president, Donald Trump, were “an error on another error” and that China “will fight until the end” to protect their interests. Beijing’s statement occurred after Trump threatened to increase import rights to China to 104% if 34% tariffs imposed on the products imported from the USA.
On Thursday, China announced a 34% tax on US exports in retaliation for similar reciprocal tariffs imposed by Donald Trump on the day of liberation.
The scenario of a commercial war between China and the US would be unfavorable for the global economy. The attractiveness of silver increases in the midst of the growing global economic tensions.
However, the demand for silver as metal decreases, given its significant application in various industries. China is considered the world’s manufacturing center, and silver is sued in several industries, such as electric vehicles (EV), electronics and solar energy.
In the face of the future, the next great trigger for the price of silver will be the data of the Consumer Price Index (CPI) for March, which will be published on Thursday. Inflation data will influence market expectations on the monetary policy perspective of the Federal Reserve (FED).
Technical Analysis of La Plata
The price of silver is recovered to test the region of rupture of the graphic formation of ascending triangle near its upward edge around the minimum of August 8, 26.45 $. The horizontal resistance of the pattern mentioned graph is drawn from the maximum of October 22, 34.87 $.
Technically, the rupture of the ascending triangle pattern indicates results in an expansion of volatility, which leads to a greater volume and formation of broad ticks.
The general tendency of the silver price is bassist, since it lies below the 200 -day exponential (EMA) mobile average, which is around $ 30.70.
The 14-day relative force index (RSI) slides towards the range of 20.00-40.00, indicating that a bassist impulse has been activated.
Looking down, the minimum of August 8, 26.45 will act as a key support for the price of La Plata. While, the maximum of April 4, 32.00 will be the main barrier.
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.
