XAGUSD. Buying opportunity?
Fundamental analysis
Silver declined to approximately $31.85 per ounce, marking its fourth consecutive drop amid demand uncertainties and strong supply.
Profit-taking also pressured prices, though the metal remains up about 10% year-to-date. Hecla Mining Company, the largest silver producer in the U.S., reported a 13% rise in silver output for 2024, reaching 16.2 million ounces—the second-highest production level in its 134-year history.
On the demand side, U.S. silver coin purchases fell 27% year-over-year in January to 3.5 million ounces, the lowest January demand since 2018.
Market participants also monitored trade developments after President Donald Trump initiated a probe into potential tariffs on copper imports to bolster U.S. metal production.
Technical analysis
The price closed below both EMAs although it was unable to break down the support level at 31.25. In addition to this, the crossing of the downward EMAs suggests that the bearish correction could extend.
If the price manages to recover and close above both EMAs, it is likely to test the 32.50 level as resistance, before 33.40.
Conversely, if the price continues on its bearish path, the metal could test the support level around 31.25 before 31.00.
Author: María Agustina Patti
Financial Markets Strategist - Exness
Silver declined to approximately $31.85 per ounce, marking its fourth consecutive drop amid demand uncertainties and strong supply.
Profit-taking also pressured prices, though the metal remains up about 10% year-to-date. Hecla Mining Company, the largest silver producer in the U.S., reported a 13% rise in silver output for 2024, reaching 16.2 million ounces—the second-highest production level in its 134-year history.
On the demand side, U.S. silver coin purchases fell 27% year-over-year in January to 3.5 million ounces, the lowest January demand since 2018.
Market participants also monitored trade developments after President Donald Trump initiated a probe into potential tariffs on copper imports to bolster U.S. metal production.
Technical analysis
The price closed below both EMAs although it was unable to break down the support level at 31.25. In addition to this, the crossing of the downward EMAs suggests that the bearish correction could extend.
If the price manages to recover and close above both EMAs, it is likely to test the 32.50 level as resistance, before 33.40.
Conversely, if the price continues on its bearish path, the metal could test the support level around 31.25 before 31.00.
Author: María Agustina Patti
Financial Markets Strategist - Exness
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.