Silver Price Daily Forecast – Silver Mixed After U.S. Initial Jobless Claims Report

Silver Video 16.04.20.

Silver Manages To Hold Its Ground As U.S. Initial Jobless Claims Report Does Not Lead To Panic Buying Of U.S. Dollar

Silver stays below the 50 EMA level at $15.60 following the release of U.S. Initial Jobless Claims  report which showed that 5.25 million of Americans applied for unemployment benefits.

Currently, it looks like the market was ready to hear the bad news, and there is no rush to safety. The U.S. Dollar Index was trying to get above the psychologically important 100 level but failed to settle above it.

Yesterday, the rush to safety following the release of disappointing U.S. Retail Sales data put pressure on silver prices. Today, silver prices may have the opportunity to show some upside since the U.S. Initial Jobless Claims report was close to analyst expectations so global markets may avoid a sell-off.

Meanwhile, gold manages to continue its upside move and stays above $1700 per ounce on both the spot and futures basis. Gold is investors’ first choice for investment purposes in the precious metal sector, but silver also benefits from gold price upside since it increases the flow of money into the whole sector.

At this point, the potential dollar strength is the main obstacle on silver’s way to pre-crisis levels. Global markets are engaged in a delicate balancing act between the negative economic data and the post-crisis outlook.

It looks like the coronavirus situation is stabilizing in the major countries, and they will soon start to reopen their economies. At the same time, the amount of economic damage dealt by the virus is still unknown, so volatility will persist.

Technical Analysis

Silver continues to trade below the 50 EMA level at $15.60. Silver will have to settle above the 50 EMA to have a chance to get to pre-crisis levels at $16.50.

On the support side, the nearest support level is located at 20 EMA at $15.00. This level has already been tested several times, and I’d expect material buying interest at this level.

In case silver breaches the 20 EMA to the downside, the next support will be provided near the $14.60 area, which was the previous resistance level.