Silver Price Daily Forecast – Silver Continues Its Attempts To Get Closer To April Highs

Silver Video 13.05.20.

Silver Consolidates Near $15.50

Silver continues to trade near $15.50 as the equity market weighs the risks of the second wave of coronavirus while the forex market digests the words of the Fed Chair Jerome Powell who stated that the Fed was not looking at negative rates.

The U.S. President Donald Trump has recently pushed for the adoption of the negative interest rate policy, but Jerome Powell has openly stated that the Fed did not view negative interest rates as an attractive policy.

He also added that the economy may face an extended period of weak growth and that a lot depended on the success on the healthcare front.

Powell’s words are generally bullish for the U.S. dollar, and the U.S. Dollar Index, which measures the strength of the American currency against a broad basket of currencies, continues to stay near the 100 level.

A stronger U.S. dollar is an obstacle to silver upside since it makes silver more expensive for buyers who have other currencies. However, in absence of strong moves on the currency side, silver may continue to live a life of its own.

In a bullish development for the whole precious metal segment, gold continues to stay above $1700 per ounce. The more time gold spends above this level, the higher the chance that it will attract a new wave of investments into precious metals.

Technical Analysis

Silver stays above the 50 EMA level at $15.40. Currently, a minor resistance level has formed near $15.65. If this resistance is breached to the upside, silver will quickly get to the test of April highs near $15.80 with good chances to get above this level.

At this point, it looks like silver is going through a consolidation phase. After this phase, a stronger move will be possible. In case silver manages to settle above April highs, the road to pre-crisis level at $16.50 will be open.

On the support side, silver enjoys minor support at the low end of the current trading range at $15.30, which is close to the 20 EMA level. In case this level is breached to the downside, silver will head towards the major support level at $14.60.