- La Plata goes back after playing a new maximum of several months during Thursday’s Asian session.
- The technical situation favors the bullies and supports the prospects for buyers at lower levels.
- A convincing break is needed below the 32.00 mark to cancel the short -term positive perspective.
La Plata (XAG/USD) attracts some vendors after reaching a maximum of almost three weeks near the 33,70 $ region during Thursday’s Asian session and returns part of the strong upward movement of the previous day. The white metal currently quotes around the area of ​​33.35 -33.30 $, with a fall of 0.75% in the day, although the technical situation supports the perspectives of which buyers arise at lower levels.
The night break through a short -term negotiation range maintained during the last week, together with the fact that the oscillators in the daily chart have begun to gain positive traction, validate the positive positive perspective for the XAG/USD. Therefore, any additional fall is more likely to be used in the round brand of 33.00, which should now act as a key point.
A convincing rupture below this area could cause some technical sales and drag the XAG/USD closer to the 32.40 $ support in the direction of the 32.10 $ -32.00 $ area. Some follow -up sales will suggest that the recent recovery from the mark of 28.00, or the minimum of the year reached earlier this month, has lost impulse and allane the road for deeper losses.
On the other hand, an impulse beyond the maximum of the Asian session, around the 33,70 $ region, should allow the XAG/USD to recover the 34.00 mark. The posterior movement could raise the merchandise towards the intermediate obstacle of $ 34.30 in the direction of the area of ​​34.55 $ -34.60 or the highest level since October 2024 reached last month and the psychological brand of $ 35.00.
4 -hour silver chart
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.
