- The price of money falls strongly at nearly $ 33.00 in the hopes of de-escalation in the Sino-Us trade war.
- China considers that the price break on certain American imports.
- Beijing denies any economic and commercial discussion with the United States.
Silver Price (XAG / USD) plunges more than 1.5% to almost $ 33.00 during North American negotiation hours on Friday. The white metal suddenly falls from its three -week summit of $ 33.70 displayed earlier during the day. The asset is weakening because investors have become more and more confident than the United States (United States) and China will conclude an agreement earlier.
The hopes of a truce on a trade war between the two largest powers in the world have increased because China said it was planning to suspend additional prices on the imports of medical equipment and certain industrial chemicals in the United States, Bloomberg reported.
Investors consider the scenario as favorable to global economic prospects. Theoretically, the improvement of global economic prospects decreases the demand for lodging assets, such as money.
Meanwhile, the US dollar (USD) rebounded after a good corrective decision on Thursday. The US dollar index (DXY), which follows the value of the greenback compared to six main currencies, is recovered at almost 99.75.
However, the contradictory statements by American president Donald Trump and China on whether the two nations came to the table or not to negotiate trade agreements should maintain investors on the sidelines. Trump said that the discussion between Washington and Beijing on Trade is going well, however, China denied these remarks, saying that there was no “economic and commercial negotiations between China and the United States”.
Silver technical analysis
The silver price drops sharply after having published a new three -week summit around $ 33.70. However, short -term prospects for white metal remain optimistic because it holds the 20 -day exponential mobile average (EMA), which is negotiated about $ 32.60.
The 14 -day relative force index (RSI) has trouble exceeding 60.00. A new bullish momentum would emerge if the RSI would break above this level.
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.
