Silver Price Daily Forecast – Silver Gains Ground Despite Higher Treasury Yields

Silver Video 01.06.21.

Silver Tests Resistance At $28.30

Silver is currently trying to settle above the resistance at $28.30 while the U.S. dollar is losing some ground against a broad basket of currencies.

The U.S. Dollar Index continues its attempts to settle below the support at 89.75. If the U.S. Dollar Index manages to settle below this level, it will move towards the support at 89.50 which will be bullish for silver and gold price today.

Meanwhile, gold is trying to gain upside momentum above the $1900 level. In case this attempt is successful, gold will head towards the next resistance at $1930 which will be bullish for silver and other precious metals.

Gold/silver ratio has recently managed to settle below the 20 EMA at 67.65 and is trying to get below the 67 level. If gold/silver ratio declines below this level, it will head towards 66.50 which will be bullish for silver.

I’d note that Treasury yields developed material upside momentum today, but higher yields failed to put any pressure on gold and silver. This is a good signal for silver bulls as it indicates that current demand for silver is strong.

Technical Analysis

Silver managed to gain upside momentum and is trying to settle above the resistance at $28.30. RSI is in the moderate territory, and there is plenty of room to gain more momentum in case the right catalysts emerge.

If silver settles above $28.30, it will head towards the next resistance level which is located at $28.90. A successful test of this level will push silver towards the resistance at $29.30. In case silver settles above the resistance at $29.30, it will move towards the next resistance at $29.85.

On the support side, the nearest support level for silver is located at $27.75. No important levels were formed between $27.75 and $28.30 so silver may quickly get to the test of the support at $27.75 if it gains downside momentum. A move below the support at $27.75 will open the way to the test of the next support level which is located at the 20 EMA at $27.55.

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