Silver Price Daily Forecast – Silver Gets Back Above $15.00Silver received material support above $14.60 and was able to return above the 20 EMA.
Silver Video 07.05.20.
Silver Enjoys Boost From Global Market Optimism
Silver has found material support above $14.60 and managed to climb back above the 20 EMA at $15.05.
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Gold is trying to climb back above the key $1700 level following yesterday’s pullback while platinum and palladium are also gaining ground.
The U.S. has recently released its new Initial Jobless Claims report which was below expectations but did not lead to any kind of a sell-off as the markets seem to be ready to face additional bad data.
It remains to be seen how long such pattern would last but it is bullish for silver which does not enjoy the status of the safe haven asset of last resort.
The U.S. dollar is mostly flat today but the U.S. Dollar Index stays above the psychologically important 100 level.
For silver, a pause in the U.S. dollar upside is welcome since stronger U.S. dollar is a bearish catalyst for precious metals as it makes them more expensive for buyers who have other currencies.
Silver got back above the 20 EMA at $15.05 and has a chance to settle in a new range between the 20 EMA and the 50 EMA at $15.40. The spread between the 20 EMA and the 50 EMA continues to narrow which signals that we can expect some more decisive action in the upcoming few weeks.
Now that silver is back above $15.00, it has a good chance to test the 50 EMA level. If this test is successful, silver will likely gain additional upside momentum and head to test April highs at $15.80.
In addition, the successful test of the 50 EMA level will signal the end of the local downtrend and the resumption of the upside momentum which can take silver to pre-crisis levels at $16.50.
On the support side, the area above $14.60 is the major support level for silver. In case this level is breached to the downside, silver will gain robust downside momentum as many traders who bet on silver upside will head to exits, creating a selling wave.