- The silver price jumps to approximately $ 34.60, as the demand for safe adherence improves amid increasing concerns about global trade.
- Investors expect that Trump’s tariff will affect economic growth and immediate inflation around the world.
- PCE basic inflation data increased by 2.8 % faster in February.
The silver price (XAG) spreads a new five -month rise near $ 34.60 in the trading hours in North America on Friday. White metal is reinforced with investors turning into caution before April 2, when the President in the United States (the United States) is scheduled to reveal Donald Trump from a mutual tariff.
Market participants expect that Trump’s tariff will lead to an economic slowdown and increase inflationary pressures in the short term. Such a scenario increases the attractiveness of safe origins, such as silver.
However, the US dollar (USD) is declining as Trump’s tariff will also affect US economic expectations. Investors expect that to influence the definitions of American imports, which will have to be transferred to consumers. The US dollar index (DXY), which tracks the value of Greenback for six main currencies, slides to approximately 104.00.
Meanwhile, the basic inflation of the United States of America-which excludes the elements of food and volatile energy-fails to provide support to the US dollar. The basic inflation data increased by 2.8 % faster on an annual basis compared to estimates and previous version by 2.7 %. The basic PCE enlarged for a month of 0.4 %, faster than the previous 0.3 %.
The acceleration of inflationary pressures compels the Federal Reserve (Fed) to maintain the position of restricted monetary policy for a longer period. High interest rates by Bode Pode are bad for non -higher assets, such as silver.
Silver technical analysis
The price of silver is advanced towards the flat border to form the style of the rising triangle chart on the daily time frame near the highest level on October 22 of $ 34.87. The boundaries of the above -mentioned pattern are set from August 8 from 26.45 dollars. Technically, the rising triangle style indicates that the market participants are not cautious.
The 20 -day SIA moving average (EMA) continues near $ 33.30 to provide support for the silver price.
The relative strength index is 14 days (RSI) above 60.00, indicating the emission of the bullish momentum.
Looking down, the highest level on March 6 of $ 32.77 will serve as the main support of the silver price. Whereas, the highest level on October 22 will be $ 34.87 is the main barrier.
Silver daily chart
Common silver questions
Silver is very precious metals circulating among investors. It has been used historically as a value of value and amid exchange. Although it is less popular than gold, merchants may turn to silver to diversify their investment portfolio, compared to its fundamental value or as a possible hedge during high inflation periods. Investors can buy physical silver, in coins or in bars, or circulate through vehicles such as the boxes circulating in Excination, which follow their price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of deep stagnation can make the price of silver escalating due to its safe position, although it is less than gold. As an inappropriate origin, silver tends to rise with low interest rates. Its movements also depend on how the US dollar (USD) is spent as the origin is priced in dollars (XAG/USD). The strong dollar tends to maintain the price of silver in the Gulf, while the dollar is likely to pay the weakest prices. Other factors such as demand for investment and mining offer – silver is much more abundant than gold – recycling rates can also affect prices.
Silver is widely used in the industry, especially in sectors such as electronics or solar energy, as it contains one of the highest electrical conductivity for all minerals – more than copper and gold. High demand in demand can increase prices, while the decline tends to reduce them. The dynamics in the United States and Chinese and Indian economies can contribute to price fluctuations: for the United States, especially China, its large industrial sectors use silver in various operations; In India, consumer demand for the precious jewelry also plays a major role in setting prices.
Silver prices tend to follow gold movements. When gold prices rise, silver usually follows its example, as its position as the similar safe origins. The percentage of gold/silver, which shows the number of ounces of silver needed to equal the value of one ounce of gold, to determine the relative evaluation between both minerals. Some investors may consider a high percentage as an indication that silver is dense with less than its value, or that gold is exaggerated. On the contrary, the low percentage may indicate that gold is less valuable for silver.
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