Silver Price Daily Forecast – Silver Dives Below $18.00Silver found itself under pressure after the release of U.S. employment reports.
Silver Video 02.07.20.
The report showed that the U.S. economy added 4.8 million jobs in June compared to analyst consensus of 3 million. Not surprisingly, the markets have interpreted this report as a major sign that a robust recovery is just around the corner so risk assets gained ground while safe haven assets found themselves under pressure.
Gold, which has recently tried to get close to the $1800 level, has declined closer to the key $1750 level. In fact, the whole precious metal segment is under pressure as silver, platinum and palladium are also losing ground.
Gold/silver ratio rebounded a bit but stays below the 20 EMA at 99.10. Gold/silver ratio has been mostly flat since mid-June although it made several attempts to get away from the 20 EMA level. At this point, it looks like additional catalysts are necessary to move gold/silver ratio in either direction.
Recently, silver tried to get above $18.50 as gold was rallying towards new highs but this attempt was not successful. Nevertheless, silver maintains solid chances to continue the upside move due to rampant money-printing from the world central banks and traders’ desire to use precious metals as a hedge against a potential equity market sell-off.
Silver failed to settle above $18.50 and declined below $18.00. Importantly, silver did not found material support at $18.00 which has previously served as a resistance level.
Currently, silver is trading in the range between the support at $17.50 and the resistance near $18.50. In addition to the support level at $17.50, silver may also get some support at the 20 EMA at $17.70.
A move below $17.50 will likely lead to a rapid sell-off since it is highly likely that many traders have put their protective stops below this important level.
On the upside, silver will have to get above the resistance near $18.50 to continue the current upside trend and head towards the test of the major resistance level at $19.00.
While the recent downside move is disappointing for silver bulls, the upside trend remains intact, and silver still has decent chances to get to the test of yearly highs at $19.00.
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