Silver Price Daily Forecast – Silver Continues Its Upside Move

Silver Video 09.04.20.

Weaker Dollar And Optimistic Equity Markets Help Silver Gain More Ground

Silver continues its previous upside trend following the release of U.S. Initial Jobless Claims, which showed that 6.6 million of Americans filed for unemployment benefits.

The U.S. stock market was swinging between gains and losses on the news, but so far showed no signs of panic due to the grim data.

The U.S. dollar is losing ground against a broad basket of currencies, and the U.S. Dollar Index has slipped below the psychologically important 100 level. The U.S. dollar weakness is bullish for silver since it makes it more affordable for buyers who have other currencies.

The situation with coronavirus stabilizes, and European countries have already started to work on plans regarding how to reopen their economies. Obviously, the current virus containment measures will be lifted gradually since no one wants to risk provoking a second wave of infection.

However, the talk about reopening the economy after weeks of never-ending bad news is already sufficient enough to encourage investors.

Gold is showing upside, and it looks like the stage may be set for another leg up in the precious metal markets. A combination of positive equity market performance and weaker U.S. dollar is exactly what silver needs to have more upside in the current market environment.

Technical Analysis

Silver prices have settled firmly above the 20 EMA at $14.75 and continue their current upside trend. Silver has previously received support just above the 20 EMA at $14.85. This level has been tested three times, and each time silver saw increased buying activity.

Thus, the $14.75 – $14.85 area is the first major support level for silver. I’d also expect that it won’t be easy for silver to go through the $14.30 – $14.60 area in case it breaches the first material support level.

On the upside, the next material resistance is at 50 EMA at $15.60. This level is close to the recent top which was reached a few days ago. In case silver is able to get above the 50 EMA level and settle there, it will have a very good chance to get back to pre-crisis levels at $16.50 and complete the current rebound.