Silver had a bit of a rough week, ending with over 4% in losses, even though it managed to post a 0.31% gain by the end of Friday’s session. This drop below $28.00 has raised concerns about a potential deeper correction. If the price falls below $27.00, we could see it heading towards the May 2 low of $26.02 and the 200-day moving average at $25.88.
On the other hand, if silver manages to rally past $28.00, it could encounter resistance at $28.91, with the next target above $29.00. The technical outlook remains neutral biased, with momentum still leaning towards the sellers’ side, as shown by the Relative Strength Index (RSI).
Investors often turn to silver as a way to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. It is less popular than gold but still highly traded among investors. Silver prices can be influenced by various factors such as geopolitical instability, fears of a recession, interest rates, and the behavior of the US Dollar.
One key indicator for silver prices is the Gold/Silver ratio, which compares the value of gold to silver. A high ratio may suggest that silver is undervalued, while a low ratio could indicate that gold is undervalued. Silver is also widely used in industries like electronics and solar energy due to its high electric conductivity, which can impact its prices based on demand.
It is important to note that investing in silver, like any other asset, carries risks. The information provided here is for informational purposes only and should not be taken as financial advice. It is always recommended to do thorough research and consider all factors before making any investment decisions.