- Silver is broken under 100 and 200-day SMAs, a strong decline signal with the increase in the US-China tariff war.
- If the RSI enters the extreme capital zone, but cannot hold $ 29, it may continue to sell up to $ 28.74 and $ 27.71.
- A recovery over $ 30 can see that recipients re -testing switch resistance close to $ 30.86 and close to $ 31,00.
Following the decision to bring mutual tariffs by US President Donald Trump, the financial market turmoil continued during the third plain day, while the silver price fell on Friday. As a result, China folded the fears of a global economic slowing. XAG/USD is traded at $ 29.55 sinking more than 7%.
XAG/USD Price Estimation: Technical View
On the lower road, silver fell below the 100 and 200 -day simple moving averages (SMA) on Friday, and the gray metal showed a strong sales of $ 31.39 and $ 30.86, respectively. Although the relative force index (RSI) decreases and excessively sold, XAG/USD may continue to be lower due to the aggression of the movement.
If XAG/USD falls below $ 29,00, it may reveal the December 19 release with a decrease of $ 28.74. When the next support is exceeded, the lowest level of September 3 will be $ 27.71. On the contrary, if the XAG/USD exceeds $ 30,00, buyers may be ready to challenge the 200 -day SMA at $ 30.86 and then monitor $ 31.
XAG/USD Price Graph – Daily
Silver FAQ
Silver is a valuable metal that is very largely traded among investors. It was historically used as a value store and a means of change. Although it is less popular than gold, traders can diversify their investment portfolios, return to silver as a potential fence during their internal value or high inflation periods. Investors can buy physical silver, coins or bars or exchange them with tools such as stock market investment funds following the price in international markets.
Silver prices can move due to a wide variety of factors. Although geopolitical instability or a deep stagnation fear is less than Gold, the silver price can increase due to safe clean change from silver security. As an inefficient asset, silver tends to rise with lower interest rates. His movements also depend on how the US dollar (USD) behaves as the dollar priced (XAG/USD). While a strong dollar tends to keep the price of silver in the gulf, it can increase a weaker dollar prices. Investment demand, mining supply – other factors such as silver are much more than gold and recycling rates can affect prices.
Silver is widely used in the industry, especially in sectors such as electronic or solar energy, because it has one of the highest electrical conductivity of all metals – more than copper and gold. While the demand increase can increase prices, a decrease tends to reduce them. The dynamics in the economies of the United States, China and India can also contribute to price fluctuations: large industrial sectors for the US and especially China use silver in various processes; In India, consumers’ demand for valuable metal for jewelry plays a key role in determining prices.
Silver prices tend to follow Gold’s moves. When gold prices increase, silver typically follows the case, because status is similar as safe assets. The gold/silver ratio, which shows the number of silver ounce required to be equal to an ounce of gold, can help determine the relative valuation between the two metals. Some investors can think of a high rate as an indication that silver is worthless or that gold is over -valued. On the contrary, a low ratio may suggest that gold is worthless compared to silver.
