Silver Price Analysis: XAG/USD makes a U-turn and slides below $31.00
-
Silver
retreats
over
2%
yet
holds
above
$30.78
‘double
bottom’
neckline. -
Downward
momentum
noted,
but
RSI
in
bullish
range
hints
at
potential
rebound. -
Key
support
at
$30.50;
further
levels
at
$30.00
and
$29.82/79
zone. -
Resistance
points
at
$31.00,
$31.75,
$32.15,
aiming
for
the
YTD
high
of
$32.51.
Silver
price
reversed
course
and
registered
losses
of
more
than
2%
on
Friday,
though
it
remained
above
the
‘double
bottom’
neckline,
keeping
the
short-term
uptrend
alive.
At
the
time
of
writing,
the
XAG/USD
trades
at
$30.78
after
hitting
a
daily
high
of
$31.43.
XAG/USD
Price
Analysis:
Technical
outlook
Silver’s
daily
chart
depicts
the
grey
metal’s
uptrend
is
in
play,
but
Friday’s
price
action
hints
that
sellers
stepped
in
aggressively,
achieving
a
daily
close
near
Thursday’s
open
at
$30.79.
Momentum
tilted
to
the
downside,
as
depicted
by
the
Relative
Strength
Index
(RSI),
which
aimed
lower
but
stood
in
bullish
territory.
Hence,
XAG/USD
could
be
headed
for
a
pullback
before
the
uptrend
continues.
If
XAG/USD
drops
below
the
psychological
$30.50
figure,
that
could
drive
the
spot
price
toward
the
$30.00
level.
Once
cleared,
the
next
stop
would
be
the
confluence
of
the
April
12
high
and
the
50-day
moving
average
(DMA)
at
$29.82/79.
On
the
flip
side,
the
XAG/USD
first
resistance
would
be
$31.00.
Once
cleared,
the
next
resistance
would
be
$31.75,
followed
by
the
$32.00
psychological
figures.
Once
surpassed,
the
May
29
peak
of
$32.15
emerges,
ahead
of
the
year-to-date
(YTD)
high
at
$32.51.
Further
gains
are
seen
above
the
latter.
XAG/USD
Price
Action
–
Daily
Chart
Silver
FAQs
Silver
is
a
precious
metal
highly
traded
among
investors.
It
has
been
historically
used
as
a
store
of
value
and
a
medium
of
exchange.
Although
less
popular
than
Gold,
traders
may
turn
to
Silver
to
diversify
their
investment
portfolio,
for
its
intrinsic
value
or
as
a
potential
hedge
during
high-inflation
periods.
Investors
can
buy
physical
Silver,
in
coins
or
in
bars,
or
trade
it
through
vehicles
such
as
Exchange
Traded
Funds,
which
track
its
price
on
international
markets.
Silver
prices
can
move
due
to
a
wide
range
of
factors.
Geopolitical
instability
or
fears
of
a
deep
recession
can
make
Silver
price
escalate
due
to
its
safe-haven
status,
although
to
a
lesser
extent
than
Gold’s.
As
a
yieldless
asset,
Silver
tends
to
rise
with
lower
interest
rates.
Its
moves
also
depend
on
how
the
US
Dollar
(USD)
behaves
as
the
asset
is
priced
in
dollars
(XAG/USD).
A
strong
Dollar
tends
to
keep
the
price
of
Silver
at
bay,
whereas
a
weaker
Dollar
is
likely
to
propel
prices
up.
Other
factors
such
as
investment
demand,
mining
supply
–
Silver
is
much
more
abundant
than
Gold
–
and
recycling
rates
can
also
affect
prices.
Silver
is
widely
used
in
industry,
particularly
in
sectors
such
as
electronics
or
solar
energy,
as
it
has
one
of
the
highest
electric
conductivity
of
all
metals
–
more
than
Copper
and
Gold.
A
surge
in
demand
can
increase
prices,
while
a
decline
tends
to
lower
them.
Dynamics
in
the
US,
Chinese
and
Indian
economies
can
also
contribute
to
price
swings:
for
the
US
and
particularly
China,
their
big
industrial
sectors
use
Silver
in
various
processes;
in
India,
consumers’
demand
for
the
precious
metal
for
jewellery
also
plays
a
key
role
in
setting
prices.
Silver
prices
tend
to
follow
Gold’s
moves.
When
Gold
prices
rise,
Silver
typically
follows
suit,
as
their
status
as
safe-haven
assets
is
similar.
The
Gold/Silver
ratio,
which
shows
the
number
of
ounces
of
Silver
needed
to
equal
the
value
of
one
ounce
of
Gold,
may
help
to
determine
the
relative
valuation
between
both
metals.
Some
investors
may
consider
a
high
ratio
as
an
indicator
that
Silver
is
undervalued,
or
Gold
is
overvalued.
On
the
contrary,
a
low
ratio
might
suggest
that
Gold
is
undervalued
relative
to
Silver.
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