Silver Price Daily Forecast – Resistance At $27.50 Stays Strong

Silver Video 10.02.21.

Weaker Dollar Provides Support To Silver

Silver continues its attempts to settle above the resistance at $27.50 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle below the nearest support level at 90.30. The recent U.S. inflation reports indicated that both Inflation Rate and Core Inflation Rate grew by 1.4% year-over-year in January compared to analyst consensus which called for growth of 1.5%.

Weaker inflation reports put additional pressure on the U.S. dollar as the U.S. Fed will be in no hurry to raise rates when inflation remains well below the 2.00% level. If the U.S. Dollar Index declines below the support at 90.30, it will move towards the next support level at 90 which will be bullish for silver and gold price today.

Meanwhile, gold managed to get above the resistance at the 20 EMA at $1845 and is trying to settle above the next resistance level which is located at the 50 EMA at $1855. If gold manages to get above the 50 EMA, it will gain additional upside momentum which will be bullish for silver and other precious metals.

Gold/silver ratio has recently stabilized in the range between 66.50 and 68. If gold/silver ratio manages to get above the high end of this range, silver may find itself under some pressure.

Technical Analysis

Silver is currently trading in the range between the support at $27.00 and the resistance at $27.50. If silver manages to settle above $27.50, it will get to the test of the next resistance level which is located at $27.75.

In case silver gets above the resistance at $27.75, it will head towards the next resistance at $28.30. This move will indicate that silver is ready to continue its upside trend.

On the support side, a move below the nearest support level at $27.00 will open the way to the test of the next support at $26.70. If silver declines below this level, it will get to the test of the next support at the 20 EMA at $26.55.

For a look at all of today’s economic events, check out our economic calendar.