Silver Price Daily Forecast – Silver Holds Above $15.00

Silver Video 29.04.20.

Silver Manages To Gain Ground While Gold Is Under Pressure

Silver continues to trade above $15.00 and stays in the range between the 20 EMA at $15.10 and the 50 EMA at $15.50.

Today, the market is once again optimistic folowing the release of the disappointing U.S. GDP data and news that Gilead‘s remdesivir trial showed positive results.

The U.S. dollar shows weakness against a broad basket of currencies, and the U.S. Dollar Index has settled below the 100 level.

In my opinion, weaker U.S. dollar may ultimately serve as a material upside catalyst for silver, especially in case the U.S. Dollar Index gets below the 99 level.

Gold is failing to show upside and currently struggles to hold above the key $1700 level. It looks like profit-taking continues while the never-ending equity market upside highlights the increase in risk appetite.

It is likely that silver may need some pause in major equity market rally to get more upside momentum, although it is not clear whether an equity market sell-off will be beneficial to the precious metal segment.

Silver has not served as the safe haven asset of last resort during the current crisis, and its moves were often uncorrelated to what was happening in other asset classes.

Technical Analysis

Silver tested the $15.00 level many times but received material buyer support. Currently, the main problem for silver upside is that it fails to gain positive momentum and get closer to the 50 EMA at $15.50.

Volatility has decreased materially, and silver is stabilizing in a new range between the 20 EMA at $15.10 and the 50 EMA at $15.50.

However, it will be hard for silver to stay in such a tight range for too long given the material volatility in the world markets. Thus, I believe that we can expect either a test of the support area between $14.90 and $15.10 or the test of the 50 EMA level at $15.50 in the upcoming trading sessions.

At this point, silver’s trend is to the upside, but this may quickly change. Despite the general market optimism, the situation remains fragile, and we’ll likely see more big silver moves in 2020.