Silver Price Daily Forecast – Silver Gets Support From Weaker U.S. Dollar

Silver Video 23.06.20.

Gold Settles Above $1750 And Provides Additional Support To Silver

Silver continues its attempts to settle above $18.00 as the U.S. dollar loses ground against a broad basket of currencies while gold is rallying towards new highs.

The U.S. Dollar Index has breached the 97 level and declined towards 96.5 as the world markets are in a rally mode following the release of better-than-expected European Flash PMI data.

The economic activity has started to recover quickly once the lockdown measures were lifted, and traders bet on a V-shaped recovery. This scenario is bearish for the U.S. dollar but rather bullish for silver which needs support from industrial demand.

At the same time, the unprecedented monetary stimulus from the world central banks continues to push gold prices higher. Gold managed to settle above the key resistance at $1750 and tries to gain additional upside momentum.

If this happens, gold will quickly move towards $1800 while other precious metals will likely experience an increase in investor interest.

Gold/silver ratio stays below the 20 EMA at 99.15 and has decent chances to develop downside momentum which would be bullish for silver.

At this point, the general market setup is favorable for silver as the American currency is losing ground while investors continue to show interest in hedging against a potential market sell-off by increasing their exposure to gold and silver.

Technical Analysis

Silver is once again trying to get above the $18.00 level where it faced certain resistance. In case silver gets above this level, it will quickly head towards the test of the next resistance level at the recent highs below $18.50.

As I noted above, the general market setup is favorable for silver while it has plenty of room to develop upside momentum as RSI is far from the overbought territory.

Thus, a potential test of the next resistance below $18.50 has decent chances to be successful, so silver could gain more upside momentum and head towards the test of the major resistance level at $19.00.

On the support side, the nearest support for silver is still located at the 20 EMA near $17.50. In my opinion, silver will need significant catalysts to move below this level.

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