- La Plata recovers positive traction after the back of the previous day from a maximum of more than a week.
- The technical situation favors the bulls and supports the short -term profits.
- A break is needed below the short -term descending channel support to cancel positive bias.
La Plata (XAG/USD) attracts new purchases during Thursday’s Asian session and reverses a large part of the backward drop in the previous day from a maximum of more than a week. The white metal rises to the neighborhood of $ 33.00 in the last hour and seems to be prepared for greater appreciation.
From a technical perspective, a descending channel in short -term graphics constitutes the formation of an upward flag in the context of the recent moderate recovery from the area of 28.45 $, or the minimum of the year reached in April. In addition, oscillators in daily/hour graphics remain in positive territory, validating the short -term constructive perspective for the XAG/USD.
However, it will still be wise to wait for a break over the obstacle of the trend channel near the 33.20 $ area before positioning for additional profits. The XAG/USD could then aim to overcome the intermediate barrier of $ 33.70 and recover the round 34.00 $. Some continuation purchases will be seen as a new trigger for the bullies and will pave the way for greater appreciation.
On the other hand, the 32.50 $ -32.45 $ area, followed by the minimum of the previous night, around the 32.25 $ region, could offer some support to the XAG/USD before the 32.00 $ brand. The following relevant support is located around the area of 31.60 $ -31.55 $, representing the lower end of the aforementioned trend channel, which, if break, could change the short-term bias in favor of the bassists.
Daily graphic silver
Plata FAQs
Silver is a highly negotiated precious metal among investors. Historically, it has been used as a value shelter and an exchange means. Although it is less popular than gold, operators can resort to silver to diversify their investment portfolio, for their intrinsic value or as a possible coverage during periods of high inflation. Investors can buy physical silver, in coins or bullion, or negotiate it through vehicles such as the funds quoted in the stock market, which follow their price in international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can cause the price of silver to shoot due to its safe refuge status, although to a lesser extent than that of gold. As an asset without performance, silver tends to climb with lower interest rates. Its movements also depend on how the US dollar (USD) behaves, since the asset is quoted in dollars (XAG/USD). A strong dollar tends to maintain the price of silver at bay, while a weaker dollar probably drives rising prices. Other factors such as investment demand, mining – silver supply is much more abundant than gold – and recycling rates can also affect prices.
Silver is widely used in the industry, particularly in sectors such as electronics or solar energy, since it has one of the highest electrical conductivities of all metals, surpassing copper and gold. An increase in demand can increase prices, while a decrease tends to reduce them. The dynamics in US economies, China and India can also contribute to price fluctuations: for the US and particularly China, its large industrial sectors use silver in several processes; In India, the demand for consumers for precious metal for jewelry also plays a key role in pricing.
Silver prices tend to follow gold movements. When gold prices go up, silver typically follows the same path, since their status as shelter is similar. The gold/silver ratio, which shows the number of ounces of silver necessary to match the value of an ounce of gold, can help determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that silver is undervalued, or that gold is overvalued. On the contrary, a low ratio could suggest that gold is undervalued in relation to silver.
