Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov

Silver Video 13.07.20.


Silver Gains More Upside Momentum

Silver managed to get above the major resistance at yearly highs at $19.00 as the U.S. dollar continued to lose ground against a broad basket of currencies while gold/silver ratio declined below 95.

Know where Gold is headed? Take advantage now with 

75% of retail CFD investors lose money

Gold continues its upside move despite the optimism in the equity markets as traders shop for protection against a potential market sell-off and bet that the unprecedented monetary stimulus from the world central banks will continue to push precious metals’ prices higher.

Meanwhile, gold/silver ratio dropped below 95 and moved towards the 94 level. Before the pandemic, gold/silver ratio was below 90. In my opinion, a return to pre-pandemic levels is a viable scenario which will provide additional support to silver.

The U.S. dollar shows weakness as traders prefer gold as a safe haven asset, and the U.S. Dollar Index has settled below 96.5. Weaker dollar is bullish for silver and other precious metals as it makes them cheaper for buyers who have other currencies.

In short, the setup remains very favorable for silver. Gold stays above $1800 per ounce and has good chances to continue its upside move. Meanwhile, gold/silver ratio is declining and looks ready to test pre-pandemic levels below 90. The weak U.S. dollar provides additional support to silver.

In my opinion, silver has better chances to settle above $19.00 and continue the upside trend compared to the previous attempt to gain upside momentum above this level that took place in the August of 2019.

Technical Analysis

Silver got above the key resistance at $19.00 and continues its upside move. The nearest resistance is $19.50, near the high of the previous attempt to settle above $19.00.

In case silver manages to settle above $19.50, it will gain additional upside momentum and head towards the next resistance at $20.00. I’d note that silver has not visited such levels since 2016.

On the support side, the previous resistance at $19.00 will likely serve as the first support level for silver because traders who have missed the initial move above this level will try to buy the pullback if it occurs.

If silver moves below $19.00, it will likely gain downside momentum and head towards the next support level at $18.50.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.