Silver Price Daily Forecast – Silver Continues To Trade Near $18.00

Silver Video 03.07.20.

Silver Gets Support As Gold Stays Near Yearly Highs

Silver trades near the $18.00 level as the U.S. dollar is flat against a broad basket of currencies and gold stays close to yearly highs.

The U.S. has reported a record number of new coronavirus cases which could provide additional support to safe haven assets. However, the U.S. dollar did not gain much ground in light-volume trading due to the observance of Independence Day holiday.

The U.S. Dollar Index has firmly settled in the range between 97 and 97.5 and will likely need significant catalysts to get out of this range. A move above 97.5 could put some pressure on silver as stronger dollar is bearish for precious metals since it makes them more expensive for investors who have other currencies.

Gold maintains good chances to continue the current upside move, especially in the light of worsening situation with coronavirus in the U.S. Traders have already been buying gold as a way to protect themselves against the potential market sell-off, and a prospect of new lockdowns will be very bullish for gold.

Meanwhile, gold/silver ratio remains glued to the 20 EMA level at 99. Silver benefits from gold price upside as it attracts investment into the whole precious metal segment but it also needs healthy economy as industrial demand is a key component of demand for silver.

Technical Analysis

Silver has settled in the range between the support level at $17.50 and the resistance level near $18.50. Recently, silver made an attempt to settle back below $18.00 but received material support and has good chances to continue the upside trend.

A successful test of the resistance near $18.50 will open the way to the test of the major resistance level at $19.00.

However, I’d note that silver failed to settle above $19.00 in 2019 and 2020 although it made several attempts and even got above $19.00 for a few days in August 2019. In this light, silver will likely face serious resistance in case it gets to $19.00.

On the support side, silver will likely get some support at the 20 EMA at $17.70 while the main support level is located at $17.50.

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