- The price of money is looking for temporary support after slipping nearly 1% to almost $ 33.00, trade tensions between the United States and China.
- Trump accused China for non-compliance with the trade agreement.
- The inflation of the American PCE cools in April.
Silver Price (XAG / USD) is down by almost 1% nearly the key level of $ 33.00 at the North American commercial house on Friday. However, white metal strives to gain ground, as trade tensions renewed between the United States (United States) and China are limited to the increase in the US dollar (USD).
The US dollar index (DXY), which follows the value of the greenback against six main currencies, is struggling to extend its early recovery above the immediate resistance of 99.70.
Historically, global economic tensions improve the demand for lodging assets, such as money. However, he finds it difficult to find offers, as a higher US dollar makes investment in the price of money an expensive bet for investors.
During the North American session, American president Donald Trump accused Beijing for non-compliance on the trade agreement in an article on the truth. “The bad news is that China, perhaps unsurprisingly for some, has completely violated its agreement with us,” wrote Trump.
Meanwhile, data on the price of personal consumer prices in the United States (PCE) for April weighed up a certain pressure on money. The inflation of American basic PCE, a privileged inflation gauge from the Federal Reserve (Fed), increased by 2.5% over the year, as expected, slower than 2.7% in March. Precious underperforming metals in an environment with low inflation.
Silver technical analysis
The money price varies between $ 31.65 and $ 33.70 over a month. The short -term trend of white metal is uncertain because it oscillates around the exponential mobile average of 20 periods (EMA), which is negotiated nearly $ 32.90.
The relative resistance index of 14 periods (RSI) oscillates inside the beach of 40.00-60.00, indicating a lateral trend.
By looking up, the March 28 summit of $ 34.60 will serve as key resistance for metal. Learning, the lowest of April 11 of $ 30.90 will be the key support area.
Daily silver graphics
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.
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