{"id":131952,"date":"2018-08-15T10:32:38","date_gmt":"2018-08-15T14:32:38","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=131952"},"modified":"2018-08-15T06:58:25","modified_gmt":"2018-08-15T10:58:25","slug":"xagmxn-silver-mexican-peso-analysis-interest-in-precious-metals-as-safe-haven","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/08\/xagmxn-silver-mexican-peso-analysis-interest-in-precious-metals-as-safe-haven\/","title":{"rendered":"XAGMXN: Silver Mexican Peso Analysis – Interest in precious metals as safe haven"},"content":{"rendered":"
August 15, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

Interest in precious metals as safe haven assets can increase<\/strong><\/p>\n

In this review, we suggest considering the personal composite instrument (PCI) &XAGMXN. It reflects the price dynamics of silver against the Mexican peso. Will XAGMXN prices<\/a> rise?<\/p><\/blockquote>\n

This happens when silver prices rise, and the Mexican peso weakens. In general, precious metals prices have fallen since the beginning of the current year amid the Fed rate hike and strengthening of the US dollar. Thus, gold prices decreased by 8% to the low for a year and a half, and silver prices – by 12% to the low for 13 months. In recent days, the interest in precious metals as safe haven assets has increased amid the collapse in exchange rates of currencies of developing countries and, in particular, of the Turkish lira. Since the beginning of 2018, the lira has fallen by 67% against the US dollar. The negative trend affected the majority of currencies of developing countries except the Mexican peso, which, since the beginning of the year, on the contrary, has strengthened by 3.5%. Recently, its prices are moving against the market. For example, since the beginning of the year, the Brazilian real collapsed by 17.6%, and the Argentine peso – by 60%, the Chilean peso – by 8%. On August 24, data on GDP and the current account balance for the 2nd quarter of 2018, which may affect the exchange rate of the Mexican peso, will come out in Mexico. If it starts to weaken together with other currencies, then this can contribute to the increase in the considered PCI.<\/p>\n

\"XAGMXN\"<\/p>\n

On the daily timeframe, XAGMXN: D1<\/b> left the downtrend. The PCI is trying to correct up from the support level and the 13-month low. The price increase may occur in case of an increase in demand for precious metals and correction of the Mexican peso.<\/p>\n