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Silver Daily Forecast – Silver Poised for Best Week Since August

By:
Kenny Fisher
Updated: Mar 6, 2020, 13:54 UTC

Silver prices are steady on Friday. The metal is up 4.7% this week, as silver has benefited from a lack of risk appetite on the part of investors.

Silver Daily Forecast – Silver Poised for Best Week Since August

Silver has posted small gains on Friday. Currently, silver is trading at $17.54, up $0.65 or 0.65% the day.

Jittery Investors Flock to Gold, Silver

Silver prices have rebounded this week, with gains of 5.22%. After last’s week disaster, when silver fell almost 10%, the metal received a much-needed boost from the Federal Reserve, which shocked the markets with a large cut of 0.50% earlier this week. The emergency cut was unexpected, as the last time the Fed made a rate cut between policy meetings was in 2008, during the financial crisis. Fed policymakers can be credited with taking decisive action at a time when the coronavirus is causing economic mayhem and threatening to cause a global recession. The Fed is counting on the sharp rate cut to boost the U.S. economy, with fears that the virus could spread rapidly in the U.S., as it has done in countries in Europe and Asia.

The Fed rate cut has put pressure on other central banks to lower rates, and Australia’s central bank immediately responded with a cut of 25 basis points. Lower interest rates make the U.S. dollar less attractive, which is bullish for precious metals. Silver may benefit from a looser monetary policy, but due to its industrial component, the flow towards precious metals in this time of crisis is likely to benefit gold more than silver.

 

Silver Technical Analysis

17.50 is under strong pressure in resistance. and was tested in the Asian session and European sessions. The round number of 18.00 is the next resistance line, followed by 18.75.

On the downside, the 50-day EMA is close by at 17.44, with the 200-day EMA following at 17.10. If the 200-day EMA crosses above the 50-day EMA, it would be a bearish signal for silver prices. Below, we find support at 16.90.

Silver 1-Day Chart

About the Author

Kenny is an experienced market analyst, with a focus on fundamental analysis. Kenny has over 15 years of experience across a broad range of markets and assets –forex, indices and commodities.

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