Silver Price Daily Forecast – Silver Gains Ground Despite Stronger DollarSilver tried to settle below $27.00 but failed to gain sufficient downside momentum.
Silver Video 12.02.21.
Declining Gold/Silver Ratio Provides Support To Silver
Silver is currently trading near the support level at $27.00 while the U.S. dollar is gaining ground against a broad basket of currencies.
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The U.S. Dollar Index managed to settle above the resistance at 90.50 and is currently trying to settle above the next resistance level at the 20 EMA at 90.65. If this attempt is successful, the U.S. Dollar Index will head towards the next resistance at the 50 EMA at 90.80 which will be bearish for silver and gold price today.
Gold managed to settle below the support level at $1830 and is moving towards the next material support level at $1800. If gold manages to settle below $1800, it wil gain additional downside momentum which will be bearish for silver and other precious metals.
It should be noted that the recent weakness in the gold market is a worrisome development for silver bulls. Right now, the decline of gold/silver ratio, which is currently trying to settle below the 67 level, provides some support to silver. However, if gold/silver ratio fails to continue its downside move while gold moves lower, silver will find itself under pressure.
Silver continues to trader near the support level at $27.00. Silver has already made several attempts to settle below this level in recent trading sessions but failed to develop sufficient downside momentum.
If silver settles below the support at $27.00, it will head towards the next support level at $26.70. A move below this level will push silver towards the support at the 20 EMA at $26.60.
In case silver declines below the 20 EMA, it will move towards the next support level at $26.30. A successful test of this level will open the way to the test of the support at the 50 EMA at $25.95.
On the upside, silver needs to stay above the support level at $27.00 to have a chance to develop upside momentum in the near term. The next resistance level for silver is located at $27.50. A move above this level open the way to the test of the next resistance at $27.75.
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