Silver Price Daily Forecast – Silver Declines After U.S. Producer Prices Report

Silver ETF Moves Closer To Yearly Lows

Silver managed to get below the support at $21.90 and is moving towards the next support level at $21.50 while U.S. dollar is losing some ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below $20.10.

The U.S. Dollar Index has recently made an attempt to get to the test of the support at 96 but lost momentum and moved back above 96.25. In case the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance level at 96.50 which will be bearish for silver and gold price today. Strong dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.

Meanwhile, gold gained downside momentum after U.S. reported that Producer Prices increased by 9.6% year-over-year in November compared to analyst consensus of 9.2%. Currently, gold is trying to settle below the support at $1775 while SPDR Gold Trust has moved below $165.50. That’s a rather strange reaction to the data which points for higher inflation, and it looks that markets expect that Fed will raise rates aggressively in 2022, which will be bearish for precious metals. In case gold gets to the test of the next support level at $1750, silver will find itself under more pressure.

Gold/silver ratio is currently trying to settle above recent highs near 81.20. In case this attempt is successful, gold/silver ratio will move towards the 82 level which will be bearish for silver.

Technical Analysis

Silver is moving towards the support level at $21.50. RSI is close to the oversold territory, but there is enough room to gain additional downside momentum in case the right catalysts emerge.

If silver manages to settle below $21.50, it will head towards the next support level at $21.30. A move below this level will push silver towards the support at $20.75.

On the upside, the previous support level at $21.90 will serve as the first resistance level for silver. In case silver climbs back above $21.90, it will move towards the next resistance which is located at $22.10. A move above $22.10 will open the way to the test of the resistance level at $22.30.

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