Silver Price Daily Forecast – Another Crazy DaySilver tested support near $23.50 but then rebounded closer to $26.00.
Silver Video 12.08.20.
Silver Rebounds Towards $26.00
Silver experienced wild trading action today, declining to $23.50 and rebounding closer to $26.00. Silver has reached a high of $29.85 just a few trading sessions ago so the current correction is very significant.
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It looks like the sudden increase in U.S. government bond yields served as a trigger for the sell-off in the precious metals space.
Gold also had a wild trading session, touching a low of $1862 and then rebounding closer to $1950.
Gold/silver ratio has been close to 80 near silver’s bottom but then pulled back towards 75. The rapid moves in gold/silver ratio add to silver’s volatility.
The nearest significant resistance for gold/silver ratio is located at the 20 EMA at 80.50. A move above this level will put more pressure on silver.
Meanwhile, silver may get some additional support from the weakness of the U.S. dollar which is currently losing ground against a broad basket of currencies.
Weaker U.S. dollar provides support to silver and other precious metals as it makes them cheaper for buyers who have other currencies.
In case the U.S. Dollar Index declines below 93 and heads towards the test of the recent lows at 92.50, silver may get a serious boost.
Silver found support near $23.50 and managed to get closer to $26.00. The nearest resistance level for silver is located at $26.20 which has also served as resistance in one of the most volatile days at the end of July.
In case silver manages to get above $26.20, it will likely gain additional upside momentum and head towards $27.00.
On the support side, the 20 EMA near $24.50 will likely serve as the first support level for silver.
If silver gets below the 20 EMA, it will head towards the low of today’s trading session near $23.50.
I’d note that silver did not manage to settle below the 20 EMA, so the current upside trend has decent chances to continue despite the brutal sell-off.
In case silver gets below the 20 EMA and does not rebound back above this level, it may develop significant downside momentum.
For a look at all of today’s economic events, check out our economic calendar.