- The price of silver fell vertically less than $ 32.00 after US President Trump announced the mutual definitions.
- A significant increase in import fees for China has increased over the demand for silver.
- Investors are waiting for NFP data in the United States, which will affect FED monetary policy expectations.
The price of silver fell almost 5 % during the trading hours in North America on Thursday, and tests the lands of less than $ 32.00. The price of the white metal became weak after US President Donald Trump revealed a detailed mutual tariff plan for his commercial partners.
The “buying rumors and selling news” index forced merchants to run the sales button for the silver price. The previous metal performance has been working strongly, along with gold, since the past few months, where investors have been increasingly confident that Trump’s tariff would be inflationary and heavily over economic growth worldwide, including in the United States. Technically, the price of silver is increasing if investors expect global economic tensions.
Fears of the American economic slowdown were affected by US dollar (USD). The US dollar index (DXY), which tracks the value of Greenback for six main currencies, to approximately 101.30, which is the lowest level seen in six months.
In addition, the escalating concerns about the demand for silver by industries have been sent strongly on the ground. On Wednesday, Donald Trump announced a 34 % import duty in China, as well as a 20 % tax imposed on drug pouring into the American economy. A significant increase in customs tariffs by Trump on China is expected to reduce the manufacturing sector. Such a scenario will weaken the demand for silver by Chinese companies, given their application in various industries such as electric cars (EV), electronics, and solar energy.
To go ahead, investors will focus on USA’s salaries (NFP) in March, which will be published on Friday. Employment data will affect the market expectations for the FBI’s monetary policy expectations.
Silver technical analysis
Silver PRICE is like the cards home after failing to reconsider 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 silver price slides to the SIA moving average for 20 days (EMA), which is about 33.35 dollars, indicating that the near -range trend has turned into a declining.
The relative strength index decreases for 14 days (RSI) to approximately 40.00. The bullish momentum will appear if the relative strength index fails to retain a level of 40.00.
Looking down, the lowest level on February 28 of $ 30.82 will be the main support for 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.
