- Silver Forms Double Dest near a key bracket, signaling potential breakthrough above USD 37.31.
- Doji candle and a skinny Christmas volume suggest stopping, not a reversal.
- Bulls Eye Resistance each 37.49 USD and USD 38.00; The risk of falls begins below USD 36.00.
Silver prices on Friday, remaining practically unchanged at USD 36.84, due to skinny trade volumes, because American markets were closed on vacation. The market mood has become a bit sour as headlines surrounding the trade war in the USA, and commercial patterns occupy a central place after approving one huge attractive bill.
Price forecast XAG/USD: Technical perspectives
From a technical point of view, gray metal stops its progress, although it remains directed up because it created a double DNA chart pattern. Nevertheless, the creation of Doji suggests that it is going on breaks, because the levels of resistance with a key eye, such as the highest year (YTD) in the amount of USD 37.31.
Momentum is stubborn, as the relative force indicator (RSI) has shown. After saying, the path of the lowest resistance is up.
The level of silver resistance for viewing would be $ 37.00, YTD High and February 29, 2012, aged 37.49 USD. After cleaning the next stop is $ 38.00. On the other hand, if XAG/USD drops below USD 36.00, it removes the testing path of 35.82 USD. After dropping, the next stop will be $ 35.00 before it would question the 50-day straight movable average (SMA) to USD 34.39.
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 secure 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 plentiful 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 huge industrial sectors utilize 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 secure 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.
