Silver Price Daily Forecast – Silver Dips As Gold/Silver Ratio Gets Back Above 100Silver failed to settle above the resistance level at $18.00 and declined closer to the support level at $17.50.
Silver Video 24.06.20.
Second Wave Worries And Stronger U.S. Dollar Put Pressure On Silver
Silver declined closer to $17.50 as gold/silver ratio got back above 100 amid fears about the coronavirus pandemic.
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Industrial demand is a very important component of total demand for silver so it’s not surprising to see silver reacting to fears about partial lockdowns to contain the pandemic.
At the same time, gold continues to benefit from the current market environment. Worries about the coronavirus pandemic and unlimited money-printing are the source of rising demand for gold which has successfully settled above the key resistance level at $1750 and continues its upside move.
Meanwhile, gold/silver ratio has managed to get above the 20 EMA at 99.35 and rallied towards 101. The next resistance level for gold/silver ratio is located at the 50 EMA at 101.80.
This is a very important level since a move above this level will open the way to the next significant resistance at 108 which will be bearish for silver.
Today, the U.S. dollar is also contributing to pressure on silver as the U.S. Dollar Index is rebounding and trying to get closer to the 97 level.
The upside trend in gold is significant so the big question is whether gold/silver ratio will continue to increase or returns below 100. A continued upside move in gold/silver ratio will be bearish for silver, while a return below the 100 level will allow silver to benefit from gold price upside.
Silver has declined to $17.50 but received material support at this level. This support level has already been tested many times and proved its strength so silver will likely need additional catalysts to get below $17.50.
If this happens, silver will head towards the next major support level at $17.00. The 50 EMA is currently located at $16.90, and a move below the 50 EMA will mark the end of the current upside trend.
On the upside, a new resistance level has been formed near $18.00. A move above this level will open the way to the test of the next resistance level at the highs seen in early June below $18.50.
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