Silver Falls Slightly, Pressure Comes from a Stronger Dollar
Silver prices (XAG/USD) weakened on Monday (August 25th), hovering around $38.749 per troy ounce after a three-day rally. This weakening was in line with the slight strengthening of the US dollar, which made the USD-denominated precious metal less attractive to foreign investors. However, strong expectations for a Federal Reserve interest rate cut next month continue to provide fundamental support, as silver, along with gold, tends to strengthen in low interest rates.
On the demand side, industrial fundamentals also support silver prices, particularly due to increasing demand from the renewable energy sector. Recent data shows that China's solar cell exports rose more than 70% in the first half of this year, driven by strong demand from India. This factor adds to the medium-term positive sentiment towards silver as a commodity and industrial hedge, although in the short term, prices remain vulnerable to corrections following dollar dynamics and the direction of US monetary policy.
Silver prices at the time of writing were down -0.37% at $38.749/Toz.
- Buy if the price moves to $38,889
- Sell if the price moves to $38,609
Resistance 2: $39,329
Resistance 1: $39,029
Support 1: $38,469
Support 2: $38,169
DISCLAIMER
Note: This article is for analytical purposes only and is not a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions. (alg)
Source: Newsmaker.id
