Xag/USD jumps to approximately $ 34, as Trump’s tariff plan improves demand for safe term
- The price of silver climbs to approximately $ 34.00 before the Trump tariff was announced.
- Trump’s mutual definitions will be unfavorable to the global economy, including the United States.
- Investors are also waiting for the American ADP employment change data for March.
The price of silver (Xag/USD) is approaching approximately $ 34.00 during European trading hours on Wednesday. The white metal moves up as investors rush to safe assets amid caution before announcing the mutual definitions by the President of the United States (United States) Donald Trump at 20:00 GMT.
US President Trump is preparing to announce a huge tariff for his trading partners in an attempt to fix what the unfair participants call to make “the wealthy America again.” According to the Washington Post, White House assistants formulated a proposal imposed a tariff of about 20 % on most imports of the United States.
In theory, the US dollar (the United States) should have increased in an unconfirmed economic environment, but it is struggling to attract bids because Trump’s tariff would also affect the American economic expectations. In addition, Trump’s tariff will also strengthen the pressure of inflation in the short term. Such a scenario will allow the Federal Reserve (Fed) to maintain interest rates in the current range of 4.25 % -4.50 % for a longer period.
Historically, the position of monetary policy restricted to the Federal Reserve heralds bad non -higher assets, such as silver.
In today’s session, investors will also focus on ADP recruitment change data for March, which will be published at 12:15 GMT. The agency is expected to show that private employers added 105,000 new workers, which is higher than 77,000 registered in February.
Silver technical analysis
The price of silver resumes its upper move towards the flat border to form the style of the chart 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 $ 33.44 to provide support for the silver price.
The 24 -day relative index (RSI) seeks to break above 60.00. A bullish momentum will appear if the relative strength indicator is above 60.00.
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.
