- Silver consolidates below its highest level in more than two weeks on Thursday.
- The mixed technical setup takes some precautions before placing fresh directional bets.
- Any corrective slide can still be seen as a purchase opportunity and can remain throne.
Silver (XAG/USD) is stable below the mark of $ 37.00 during the Asian season on Friday and remains within a distance of over two weeks over the last day. Meanwhile, the creative technical setup suggests that the least resistance for white metal remains upside down.
The daily relative power index (RSI, 14) remains above 50 and validate the positive attitude for XAG/USD. However, the moving average convergence deviation (MACD) histogram and signal line on the daily chart is yet to confirm the rapid bias, suggests that any latter step could be a stall near the $ 37.30- $ 37.35 area, or the highest level since February 2012 was early this month. Some follow-three purchases, however, will determine the platform for the expansion of about three months old uptrend.
On the other hand, $ 36.50- $ 36.45 area now seems to be immediately to protect the immediate negative side, under which Xag/USD can slide up to $ 36.15- $ 36.10 area. Another decline below the mark of $ 36.00 may move towards $ 35.50- $ 35.40 horizontal area. The latter should act as a major decisive point and will move back to the prohibition of near-term in favor of a solid brake recession traders below. White metal may then accelerate a corrective decline towards the next relevant support near a $ 35.00 psychological mark.
Some follow-three must pave the way for deep losses to sell below and draw the XAG/USD in an intermediate support for the $ 34.75N route near the $ 34.75N route.
Silver 4-hour chart
Silver questions
Silver is a precious metal that does excessive trading among investors. It has historically used as a means of stocks and exchange of exchange. Although gold is less popular than gold, traders can turn to silver to diversify their investment portfolio, for its internal value or as a possible hedge during the high-stake period. Investors can buy physical silver, trade it in coins or in bar, or through vehicles such as exchange traded funds, which track its price on international markets.
Silver prices may proceed due to a wide range of factors. The price of silver may increase due to geopolitical instability or a deep recession fears due to its safe-horn position, although somewhat compared to gold. As a yield property, silver grows with low interest rates. Its gait also depends on how the US Dollar behaves as the property is priced at dollars (XAG/USD). A strong dollar goes to maintain the price of silver in the Gulf, while a weak dollar prices are likely to increase. Other factors such as investment demand, mining supply – silver is much more abundant than gold – and recycling rates can also affect prices.
Silver is widely used in industry, especially in areas such as electronics or solar energy, as it has one of the highest electrical conductivity of all metals – more than copper and gold. Increase in demand may increase prices, while the decline reduces them. Mobility in the US, Chinese and Indian economies can also contribute to value swings: for the US and especially China, their large industrial areas use silver in various processes; In India, the demand of consumers for precious metal for jewelery also plays an important role in determining prices.
Silver prices follow gold moves. When gold prices rise, silver usually follows the suit, as they have the same position as a safe-horn property. The ratio of gold/silver, which reflects the number of silver ounces equal to the value of an ounce of gold, can help determine the relative evaluation between the two metals. Some investors may assume a high ratio as an indicator that silver has not been evaluated, or gold is overwelled. Conversely, a low ratio may suggest that gold is underwelled relative to silver.
