- XAG/USD narrow to USD 32.73 (50-day SMA), supported by 100-day SMA near $ 31.88 among uncertain trade.
- RSI flat near the neutral; A break is needed above $ 33.00 to transform stubborn in the direction of $ 33.50–34.51
- A decrease below USD 32.00 may reveal USD $ 31.65, and the 200-day SMA after $ 31.23 as a bear pressure is built.
Silver Prices fell lower on Friday, with losses by more than 1%, the week ended with a negative note among the growing profitability of the US Treasury, which returned delayed during the North American session. XAG/USD trads 32.26 USD after reaching a daily summit $ 32.68 at the time of writing.
Price forecast XAG/USD: Technical perspectives
XAG/USD consolidated as part of 50 and 100-day straight average movable (SMA) each 32.73 USD and USD 31.88 in the last five days, without evident bias, as shown on the daily table. Relative strength indicator (RSI), although Bearish, remains flat near the 50-neutral line, flat.
This confirms the lack of gray metal direction, but the buyers could regain control if he cleaned the trend line downloaded from March 28 – April 25, which can be broken by nearly USD 33.00. The violation of the latter will reveal USD 33.50, followed by USD 34.00. After crossing the next stop, the peak on October 30 for $ 34.51 would be.
And vice versa, if XAG/USD drops below $ 32.00, the first support would be 100-day SMA, and then the lowest level 15 May $ 31.65. After cleaning this level, the next stop would be the 200-day SMA after $ 31.23, followed by $ 31.00.
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 sheltered 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 mighty dollar tends to maintain the price of silver, while the weaker dollar will probably enhance 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 enhance in demand can enhance 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 vast 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 sheltered 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 aid 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.
