- La Plata goes back from a maximum of three weeks that was tested again this Friday.
- The configuration supports the prospects for the appearance of buyers in setback.
- A rupture below the level of $ 32.00 could cancel the positive bias.
La Plata (XAG/USD) moves down after trying the maximum of three weeks during Friday’s Asian session and currently quotes around $ 33,00, with a 0.30% drop in the day. However, the technical configuration advises caution before positioning itself for any significant depreciative movement.
This week’s rupture above the round figure of 33.00, which represents the upper end of a range of several days and the 61.8% fibonacci setback level of the March-April fall, was seen as a key trigger for the bulls. In addition, the oscillators in the daily chart have been gaining positive traction and are still far from being in overcompra territory. This, in turn, suggests that the least resistance path for the XAG/USD is upwards.
Therefore, any posterior landslide could still be seen as a purchase opportunity near the rupture point of 33.00, which has now become support. A convincing rupture below that level could cause some technical sales and drag to the XAG/USD more towards the 32.40 $ in the direction of the area of 32.10 $ -32.00 $. Some continuous sales will suggest that the recent recovery from the level of 28.00, or the minimum of the year to date, has lost impulse.
On the other hand, the 33,70 $ area now seems to have emerged as an immediate obstacle, above which the XAG/USD could aspire to recover the level of 34.00. The impulse could extend even more towards the intermediate resistance of 34.30 $ in the direction of the next relevant barrier near the region of 34.55 $ -34.60 $, or the highest level since October 2024 reached last month. White metal could eventually aspire to conquer the psychological level of $ 35.00.
4 -hour graphic silver
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.
