- The silver price will drop rapidly to USD 33.00 to the hope of de-leaning in the Sino-Us trade war.
- China is considering stopping tariffs for some US imports.
- Beijing denies all economic and commercial talks from the USA.
The silver price (XAG/USD) will drop by over 1.5% to almost USD 33.00 at the North American trade on Friday. White metal drops rapidly from a three -week maximum of 33.70 USD published earlier that day. Assets are weakened when investors become more and more confident that the United States (USA) and China will conclude an agreement earlier.
The hopes for a truce in the trade war between the two largest powers in the world have increased because China said that he was considering the suspension of additional tariffs for the import of medical equipment and some industrial chemicals from the USA, Bloomberg informed.
Investors perceive the script as favorable to global economic prospects. Theoretically, the improvement of global economic perspectives reduces the demand for safe and sound assets such as silver.
Meanwhile, the US dollar (USD) returned after a acute repair traffic on Thursday. The American dollar index (DXY), which follows the Greenback value compared to the six main currencies, is recovered to almost 99.75.
However, contradictory statements of US President Donald Trump and China about whether both nations appeared on the table or not in the event of negotiations of commercial contracts, will keep investors out of the way. Trump said that the discussion between Washington and Beijing about trade was going well, but China denied these comments, saying that there were no “economic and commercial negotiations between China and the USA.”
Silver technical analysis
The silver price will drop rapidly after publishing a fresh three -week highest approximately USD 33.70. However, the short-term perspective of white metal remains stubborn because it maintains a 20-day interpretation average (EMA), which trads around 32.60 USD.
The 14-day relative force indicator (RSI) tries to break above 60.00. A fresh stubborn shoot would appear if RSI crashes above this level.
Looking up, the highest level of March 28 in the amount of USD 34.60 will act as a key resistance to metal. On the other hand, the lowest support zone will be the lowest support zone worth 30.90 USD.
Silver daily chart
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 safe and sound 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 sturdy 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 ample 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 apply 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 safe and sound 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.
