Categories: Forex News
| On
2023-08-31 1:14 PM

Silver’s Rise and Dip: South Africa Watches Market Moves

  • Silver recently retracted from its peak of ZAR 471.00 ($25.00) and experienced a downturn for two consecutive days but showed signs of a slight recovery during the European trading session.
  • Technical indicators signal bullish sentiments with the silver price crossing the ZAR 459.06-745.60 ($24.35-$24.40) resistance, but potential declines could find support around the ZAR 452.64 ($24.00) mark, aligned with the 200-hour SMA.
  • Given South Africa's prominence in the mining and metals sector, these fluctuations in silver prices have significant economic implications for the country, urging local stakeholders to stay vigilant and adapt strategies accordingly.
By Nonhlanhla

In a noteworthy turn, silver experienced a decline from its psychological threshold of ZAR 471.00 ($25.00), which stood as a zenith for over a month. On Thursday, the precious metal maintained its downtrend for the second consecutive day. However, as the European trading session dawned, silver showcased a marginal revival from its daily low, stabilizing slightly above the mid-ZAR 452.64 ($24.00) range, marking a diminution of less than 0.30% for the day.

For those observing from a technical lens, the recent breakthrough in the ZAR 459.06-745.60 ($24.35-$24.40) barrier heralded a new dawn for bullish investors. Augmenting this sentiment, daily chart oscillators continue to resonate positivity, with ample room before they reach the overbought spectrum. This establishes a conducive atmosphere for potential dip purchases, indicating that XAG/USD’s most plausible trajectory remains upward.

Consequently, any downturns that breach this newfound support (previously a resistance) are anticipated to find substantial backing and will likely be constrained around the emblematic ZAR 452.64 ($24.00) mark. This mark is proximate to the ascending 200-hour Simple Moving Average (SMA), postulated as a robust foundation for XAG/USD. However, a sustained dip below this might unleash a wave of technical sales, potentially pushing silver towards the vicinity of ZAR 443.39 ($23.55).

A subsequent support looms around ZAR 440.86 ($23.40), characterized by the 200-day SMA. A definitive breach here might realign the short-term outlook, favoring bearish stakeholders, setting the stage for a descent towards the sub-ZAR 433.12 ($23.00) thresholds, and possibly reaching lows of ZAR 418.29 ($22.20), reminiscent of June 23’s figures from earlier this month.

Conversely, on the ascent spectrum, the ZAR 465.49 ($24.70) frontier may act as an immediate barrier, with the elusive ZAR 471.00 ($25.00) mark following closely. A sustained buying momentum could potentially propel XAG/USD beyond the intermediary obstacle of ZAR 475.85 ($25.25), harking back to July’s zenith, steering towards the coveted ZAR 489.60 ($26.00) mark. Tailgating this is the Year-To-Date climax, around the ZAR 492.62 ($26.15) territory, which if transcended, could catalyze the continuation of the bullish trend observed recently.

For South Africa, a nation enriched with mineral wealth and mining significance, such fluctuations in silver prices can have substantial economic implications. As silver charts its course, local traders, investors, and the mining industry should remain vigilant, calibrating their strategies in accordance with these global market dynamics.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za

Tags: Silver