Silver Price Daily Forecast – A Great Day For Precious Metals

Silver Video 01.12.20.

Silver Rebounds After Recent Sell-Off

Silver gained strong upside momentum and made an attempt to settle above the 20 EMA at $23.75 while the U.S. dollar continued to lose ground against a broad basket of currencies.

The U.S. Dollar Index has once again managed to settle below the support at 91.75 and is moving towards the next support level at the yearly lows at 91.50. If the U.S. Dollar Index settles below the support at 91.50, it will gain downside momentum and head towards the next support level at 91 which will provide support to silver and gold price today.

Gold managed to get back above the $1800 level and is trying to settle above the resistance at $1815. If this attempt is successful, gold will head towards the next resistance at the 20 EMA at $1845 which will be bullish for silver.

Gold/silver ratio has just made a major move. Yesterday, gold/silver ratio failed to settle above the 80 level and developed downside momentum. Today, it managed to get below the support at the 20 EMA at 77.60 and is trying to get below the next support level at 76.50. If gold/silver ratio declines below the support at 76.50, it will head towards the next support at November lows near 75.50 which will provide additional support to silver.

Technical Analysis

Silver managed to settle above the resistance level at $23.30 and is trying to get above the next resistance at the 20 EMA at $23.75. If this attempt is successful, silver will gain additional upside momentum and head towards the next resistance level at the 50 EMA at $24.10.

The 50 EMA was a major resistance level for silver in the second half of November so silver will likely attract a lot of interest at this level. If silver gets above the 50 EMA, it will move towards the next resistance level near $24.60.

On the support side, the nearest support level for silver is located at the previous resistance at $23.30. A successful test of this level will open the way to the test of the next support at $22.90. If silver declines below this support level, it will head towards the next support at $22.60.

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