- The price of money increases to almost $ 33.00 while Trump threatened to announce prices on pharmaceutical imports.
- China said trade negotiations would only start after the United States has reduced additional rates, which is currently 145%.
- The Fed should leave stable interest rates on Wednesday.
The price of money (XAG / USD) increases to nearly $ 33.00 during European negotiation hours on Tuesday. White metal is strengthening as the demand for assets on packages increases after the President of the United States (United States), Donald Trump, threatened to impose prices on pharmaceuticals.
On Monday, President Trump said he intended to reduce dependence on pharmaceutical imports and announced prices in two weeks. Trump has signed prescriptions to reduce time to approve new pharmaceutical factories and asked the Environmental Protection Agency (EPA) to accelerate the construction of new manufacturing facilities.
Meanwhile, a persistent uncertainty about American-Chinese trade negotiations continues to support the demand for assets with packages, such as money. The two nations are negotiated at a very high level of prices, attenuating the operational margins of companies. The United States has imposed 145% prices on imports from China, while the latter takes 125% of import duties. Washington said these prices are not durable, but he wants Beijing to launch commercial talks before reducing import duties. However, Beijing said that he would return to the table for commercial negotiations that after the United States has passed additional samples.
In addition, the underperformance of the US dollar before the monetary policy decision of the Federal Reserve (Fed) on Wednesday also supported the money price. The US dollar index (DXY), which follows the value of the greenback against six main currencies, the exchanges are down around 99.60. Technically, a lower US dollar makes the price of money an attractive bet for investors.
According to the CME Fedwatch tool, traders have a price entirely in that the Fed will leave stable interest rates in the range of 4.25% to 4.50% for the third consecutive consecutive meeting.
The Fed scenario which maintains interest rates augurs badly for uninformed assets, such as money.
Silver FAQ
Silver is a very exchanged precious metal between investors. It was historically used as a reserve of value and means of exchange. Although less popular than gold, traders can turn to money to diversify their investment portfolio, for its intrinsic value or as potential coverage during periods with high inflation. Investors can buy physical money, in coins or in bars, or exchange it via vehicles such as exchanged funds, which follow its price on international markets.
The prices of money can evolve due to a wide range of factors. Geopolitical instability or fears of a deep recession can increase the price of money because of its safety status, although to a lesser extent that gold. As an intake without yield, money tends to increase with lower interest rates. Its movements also depend on how the US dollar (USD) behaves as the asset is assessed in dollars (XAG / USD). A strong dollar tends to maintain the price of money remotely, while a lower dollar is likely to develop prices. Other factors such as investment demand, mining supply – money is much more abundant 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 increase in demand can increase prices, while a decrease tends to lower them. Dynamics in the United States, Chinese and Indian economies can also contribute to price oscillations: for the United States and in particular China, its major industrial sectors use money in various processes; In India, consumer demand for precious metal for jewelry also plays a key role in pricing.
Money prices tend to follow Gold movements. When gold prices increase, silver generally follows suit, because their original package status is similar. The gold / silver ratio, which shows the number of silver ounces necessary to match the value of an ounce of gold, can help determine the relative evaluation between the two metals. Some investors may consider a high ratio as an indicator that money is undervalued, or gold is overvalued. On the contrary, a low ratio could suggest that gold is undervalued in relation to money.
