XAGUSD: Silver Prices
In this section, you will find our latest Silver price news and analysis, you will also be able to read about its history, and find a live chart for technical analysis.
Just like gold, silver is a precious metal that is widely seen by investors as having intrinsic value. This means that the demand for it typically rises in the midst of concerns like slow economic growth, unemployment, political uncertainty, war, and the like. It is widely assumed that amid these problems this tangible asset will still hold value. With that said, XAGUSD tends to trade higher when investors have a cause for concern. For instance, the precious metal’s rally in 2010 was fueled by concerns surrounding the eurozone debt crisis and the potential contagion it posed.
What is XAGUSD?
XAGUSD is the financial symbol for the spot price of silver and in terms of US dollars. Prior to the 2008 financial crisis, there was very little demand for the precious metal. In fact, the spot price of silver averaged around $4.99 an ounce from September 1998 to May 2003. It then rose to $14.44 in 2006 to 2007. In 2008, it reached a low of $8.50 and rose to $49.53 in two years!
Secondly, because it is priced in US dollars, silver also shares an inverse relationship with the currency. This means that a stronger dollar could weigh it down while a weaker dollar could help it gain traction on the charts. Aside from the fact that it is pegged against the US dollar, another reason for this relationship is because the US dollar can also be viewed as a cheaper safe-haven alternative to precious metals. The currency has gained this reputation thanks to its Treasury bills and the fact that the US has never missed paying its debt on time.
It is also said that silver tends to react to manufacturing data. This is because unlike gold, silver actually has some industrial uses. The precious metal is used in automotive, electronics, and event photography.
Live XAGUSD Chart
Silver Price News
Silver price declined slightly today as traders took a breather following the recent rally that saw it reach the highest level since February. Other metals like copper, platinum, and palladium that saw a big bounce yesterday also weakened today.
Silver price (XAGUSD) is ready for a breakout if the technical chart patterns and fundamental issues are to go by.
The silver price is sitting around the $15 per troy as bulls and bears wait for the next catalyst. At the same time, investors are increasing their exposure on the metal, according to the Financial Times.
Silver price has lagged gold that of gold this year. The price of silver has declined by more than 16% while that of gold has soared by more than 12%.
Silver price has defied logic today. The price is off by more than 1.50% which is controversial because most metals have soared today. It also defies logic because the dollar index has declined by more than 40 basis points today. Further, the price has declined even as the overall market...