- The price of silver rises to $ 32.60 in the middle of the weakness of the US dollar.
- Fed keeps interest rates almost certain on Wednesday.
- The uncertainty of US-China trade restricts the negative aspect of silver prices.
The price of silver (XAG/USD) is on Monday at almost $ 32.60 at the North American trade classes. White metal is strengthened when the US dollar (USD) falls at the beginning of the week, with the Federal Reserve (Fed) Monetary Policy Meeting Focus. Technically, the fall of the US dollar makes the investment silver price an attractive contribution to investors.
US dollar index (DXY), which monitors the value of Greenback to six main currencies, almost 0.5% has fallen by about 99.50.
According to the CME Fedwatch tool, traders are almost confident that the central bank will keep interest rates firmly on Wednesday. The tool also shows that the likelihood of lower loan rates in Fed in June has fallen from 66% to 32% a week ago. Traders have fed the bets for June meeting after he is outlined from a better edition United States (US) Non -agricultural payroll (NFP) Data on April.
Theoretically, the high interest rate environment is poorly for harvest assets, such as silver.
In the meantime, silver has also supported the decreasing hopes of the US-China Trade War resolution. Demand for safe assets, such as silver, increases as the geopolitical tensions increase.
US President Donald Trump said Sunday that he was not going to talk to Chinese President Xi Jinping this week, but expressed his readiness to Chinese tariffs. “At some point I intend to humiliate them, otherwise you could never do business with them and they want to do business,” Trump said.
On the economic front, PMI data in US ISM services is better than expected. Services PMI expanded faster at 51.6 from 50.8 in March and estimated at 50.6.
Silver technical analysis
The price of silver is in trouble over three weeks of height of about $ 33.70. The short-term outlook of white metal has become uncertain as it is less than 20 days of exponential moving average (mother), which trades about $ 32.65.
The 14-day relative strength index (RSI) drops below 50.00 after it does not break over 60.00, indicating that investors are no longer bullish.
Looking up, the highest $ 34.60 in March 28 acts as a metal key. The downside is the lowest low -low $ 30.90 in April.
Silver chart
Silver
Silver is a precious metal with high trading in investors. It is historically used as a means of value and exchange. Although traders are less popular, traders may turn to silver to diversify their investment portfolio, its internal value or potential risking during the high inflation period. Investors can buy physical silver in coins or bars or trade through vehicles such as exchange funds that monitor its price in international markets.
Silver prices can move due to a variety of factors. Geopolitical instability or fears of a deep recession may escalate the price of silver due to its safe status, albeit to a lesser extent than gold. Silver tends to rise at lower interest rates as a sawless property. Its moves also depend on how the US dollar (USD) behaves when assets are valued (XAG/USD). A strong dollar tends to keep the silver price in quiet, while the weaker dollar is likely to push prices. Other factors, such as investment demand, mining offer – there is much more silver than gold and recycling rate can also affect prices.
Silver is widely used in industry, especially in sectors such as electronics or solar energy, as it has the highest electrical conductivity of all metals – more than copper and gold. Increased demand can increase prices while the decline tends to lower them. Dynamics in the US, China and India can also contribute to price changes: for the United States and especially China, their large industrial sectors use silver in various processes; In India, consumer demand for jewelery precious metal also plays a key role in determining prices.
Silver prices tend to follow the golt course. When gold prices rise, silver usually follows an example, as their status as safe worsening assets are similar. The ratio of gold/silver, which shows the number of silver units to equalize one ounce value, can help determine the relative evaluation of both metals. Some investors may consider a high relationship as an indicator that silver is underestimated or gold is overestimated. On the contrary, a low ratio may indicate that gold is underestimated in silver.
