Silver (XAG/USD) is facing a weaker start to the new week, staying below the $30.00 level. The recent failures near the 200-day SMA indicate a negative outlook for the white metal. A move above $30.00 is needed to shift the bearish bias. Technical indicators suggest that the path of least resistance for XAG/USD is downwards, with a potential drop towards the $29.00 mark.
The downward trajectory could extend towards the $28.75-$28.70 range, or even the multi-month low, acting as a key pivotal point. A break below this level could lead to a continuation of the downtrend from the $35.00 neighborhood. On the other hand, a break above $30.00 could open the door for a rally towards $31.00 and the $31.15-$31.20 supply zone. The $30.00 mark continues to act as a strong barrier for further upside movement.
Silver is a precious metal that is highly traded among investors as a store of value and a medium of exchange. Investors can buy physical Silver in coins or bars, or trade it through Exchange Traded Funds. The price of Silver can be influenced by factors such as geopolitical instability, interest rates, the US Dollar, investment demand, mining supply, and recycling rates.
Silver is widely used in various industries like electronics and solar energy due to its high electric conductivity. Demand from these sectors can impact prices. Economic dynamics in major countries such as the US, China, and India also play a role in determining Silver prices. The metal tends to follow Gold’s movements, with the Gold/Silver ratio indicating the relative valuation between the two metals.
In conclusion, Silver is facing a bearish outlook, with potential downside towards the $29.00 mark. A break above $30.00 could lead to a rally towards $31.00. Factors such as geopolitical instability, interest rates, and industrial demand can influence Silver prices. The metal follows Gold’s movements and the Gold/Silver ratio can help investors assess the relative valuation between the two metals.
