Silver struggles to keep up the pace with gold


  • Silver is underperforming its sister currency, gold. 
  • Industrial demand has plummeted, weighing on silver prices. 

XAG/USD is currently trading at $14.9708, flat on the day having recovered from its worst levels within the day's $15.1690 and $14.8521 range. We are in a positive precious metals environment considering the ballooning central bank balance sheets and fiscal deficits, although silver is the laggard. 

Besides these ballooning central bank balance sheets and fiscal deficits, an old friend to safe havens has reared its ugly head again this week – trade wars are back with vengeance.  The US administration is insisting on accusations that the virus originated in a laboratory in Wuhan, Central China's Hubei Province. More on that here: Pompeo and Trump ratcheted up US and China tensions. This was a catalyst for a number of subsequent headlines, stoking the flames of war between China and the US. 

Silver lags gold at times of risk-off themes

However, what should be noted is that during the 2018 and 2019 trade wars, silver did not perform. Instead, gold rallied in the middle of the trade spat. It wasn't until late in the day when silver started to play catch-up with gold in the summer of 2019. Prices collapsed during the COVID-19 burn-out with the USD rallying towards the 104 handle in the DXY. In fact, the ratio of gold-to-silver prices is currently around 113 as gold starts to pick-up the baton again. Given how industrial demand has plummeted due to coronavirus (COVID-19) shutdowns, silver will always likely struggle in such an environment. 

Silver levels

 

Overview
Today last price 14.95
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 14.95
 
Trends
Daily SMA20 15.19
Daily SMA50 15.2
Daily SMA100 16.53
Daily SMA200 16.98
 
Levels
Previous Daily High 15.04
Previous Daily Low 14.72
Previous Weekly High 15.51
Previous Weekly Low 14.7
Previous Monthly High 15.85
Previous Monthly Low 13.82
Daily Fibonacci 38.2% 14.92
Daily Fibonacci 61.8% 14.84
Daily Pivot Point S1 14.77
Daily Pivot Point S2 14.59
Daily Pivot Point S3 14.46
Daily Pivot Point R1 15.08
Daily Pivot Point R2 15.21
Daily Pivot Point R3 15.39

 


 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD: Bounces off one-week low on Powell-Mnuchin comments, eyes RBA

AUD/USD probes pullback from multi-month high ahead of the key data/events. Fed Chair Powell conveys economic worries, US Treasury Secretary Mnuchin pushes for stimulus. Risks dwindle amid economic fears, uncertainty over the US covid aid package.

AUD/USD News

Gold: Wobbles near five-month low below $1,800 as Powell, Mnuchin weigh on risks

Gold prices seesaw around $1,77/78 during the early Tuesday morning in Asia. The yellow metal dropped to the lowest since July the previous day before bouncing off $1,764.73. Economic fears, need for stimulus raise bars for the bull’s entry.

Gold news

EUR/USD retreats after its first attempt to break above 1.2000

EUR/USD trades around 1.1940 after failing to break above the psychological threshold. Bulls retain control and would likely challenge the level once again.

EUR/USD News

Ripple Price Prediction: XRP sits on the verge of an explosive breakout

XRP traded as high as $0.78 on November 24 before a brief period of a correction down to $0.456. Ripple price is trading at $0.655 at the time of writing, notably recovering from the dip and aiming to set higher highs.

Read more

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures