- Silver breaks below 100- and 200-day SMA, signals a powerful bear rush in connection with the escalation of the US-Chin tariff battle.
- RSI enters Oversold, but sales pressure can last up to USD 28.74 and 2,7.71 USD if it does not keep $ 29.
- Recovery above 30 USD could have made the buyer to set 30.86 USD SMA again and a key resistance near $ 31.00.
Silver Price dropped on Friday, when the confusion on the financial market lasted the third day in a row, after the decision of the US President Donald Trump about the application of mutual tariffs. Therefore, China took revenge, causing concerns about the global economic slowdown. XAG/USD is the subject of USD 29.55, sinking over 7%.
Price forecast XAG/USD: Technical perspectives
Along the way lower, silver fell on Friday below 100- and 200-day straight average movable (SMA), which indicates a powerful sale when gray metal cleaned $ 31.39 and USD 30.86, respectively. Although the relative strength rate (RSI) has become bear and sold out, due to traffic aggressiveness, XAG/USD may still be lower.
If XAG/USD drops below USD 29.00, this may reveal the low level of 19 December 28.74 USD. After exceeding the next support, the lowest levels of September 3 would be $ 27.71. And vice versa, if XAG/USD increases to USD 30.00, buyers could challenge the 200-day SMA challenge for 30.86 USD and then $ 31.
Chart of prices XAG/USD – daily
Silver often asked questions
Silver is a highly highly commercial metal among investors. It was historically used as a magazine of values ​​and exchange medium. Although less popular than gold, traders can turn to silver to diversify their investment portfolio, due to its internal value or as potential security during high inflation periods. Investors can buy physical silver, in coins or in bars or replace them via vehicles such as stock funds that follow their price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fear of a deep recession can cause the escalation of silver price due to its protected status, although to a lesser extent than gold. As a resource without profitability, silver tends to grow at lower interest rates. His movements also depend on how the US dollar (USD) behaves because the resource is valued in dollars (xag/USD). A powerful dollar tends to maintain the price of silver, while the weaker dollar will probably raise prices. Other factors, such as investment demand, mining supply – silver is much more bountiful than gold – and recycling rates can also affect prices.
Silver is widely used in industry, especially in sectors such as electronics or solar energy, because it has one of the highest electrical conductivity of all metals – more than copper and gold. An raise in demand can raise prices, and the decline tends to lower them. Dynamics in the United States, Chinese and Indian economy can also contribute to price fluctuations: for the USA, and especially China, their gigantic industrial sectors exploit silver in various processes; In India, consumer demand for precious metal for jewelry also plays a key role in setting prices.
Silver prices usually follow gold movements. When gold prices are rising, silver usually follows it because their status as protected assets is similar. The ratio of gold/silver, which shows the number of ounces of silver needed to equalize the value of one ounce of gold, can lend a hand determine the relative valuation between the two metals. Some investors can recognize a high ratio as an indicator that silver is underestimated or gold is overstated. On the contrary, low ratio may suggest that gold is underestimated in relation to silver.
