- The price of silver can again check the barrier in a nine -day EMA in the amount of USD 36.16.
- Pulls prejudice is strengthened because the 14-day relative strength indicator remains above level 50.
- The couple find immediate support around the lower border of the channel growing for USD 36.00.
The price of Silver (XAG/USD) regains the last profits registered in the previous session, trading around USD 36.00 per ounce of Troy in the early European hours on Tuesday. The technical analysis of the daily chart shows the price of precious metal residues within the growing channel, which suggests the dominant stubborn prejudice.
In addition, the 14-day relative strength indicator (RSI) is still set above level 50, which indicates stubborn perspectives. However, the price of silver remains below the nine -day interpretation of the movable average (EMA), emphasizing that the compact -term shoot is weaker.
The XAG/USD pair could find a direct barrier on a nine -day EMA in the amount of USD 36.16. A successful violation above this level would strengthen the compact -term price rush and support a pair to test $ 37.32, the highest since February 2012. Further progress would open the door for the silver price to examine the region around the upper border of the channel rising around USD 39.50.
On the other hand, the silver price is testing the lower border of the channel growing about USD 36.00. A successful break below the channel would result in the appearance of a bear and exert pressure on XAG/USD pairs to test the 50-day EMA at 34.36 USD. A further decrease would weaken the medium -term price rush and will prompt the price of silver to move around the region around the two -month lowest level $ 31.65, which was registered on May 15.
XAG/USD: 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 mighty 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 profuse 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 enormous industrial sectors operate 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 facilitate 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.
