Silver Price Daily Forecast – Silver Holds Above Key Support At $14.60

Silver Video 05.05.20.

Silver Gains Ground Despite U.S. Dollar Strength

Silver continues to trade above the key support level at $14.60 despite the stronger U.S. dollar as global market optimism provides support for many asset classes.

The U.S. dollar is certainly a headwind for silver today as the U.S. Dollar Index continues to rebound from the 99 level and has already tested the 100 level.

Currently, the U.S. Dollar Index is in the range between 99 and 101, and a breakout from this range may lead to increased momentum and serve as an important catalyst for silver.

Meanwhile, gold is trading near the $1700 level as it fails to get additional upside momentum. In my opinion, the unprecedented monetary stimulus from the world central banks will continue to serve as an important bullish factor for gold but it looks like gold will need some additional near-term catalysts to continue its upside move.

The absence of gold price upside makes it hard for silver to rally but I’d note that the support at $14.60 looks strong and suggests that there is still significant buyer interest in silver despite the recent pullback.

Technical Analysis

Silver trades below the 20 EMA near $15.00 and the local trend is to the downside as it moves in a rather tight downside channel. Recently, silver had a decent chance to get above resistance at $15.50 but it did not use it, lost momentum and is currently drifting towards the major support at $14.60.

The $14.60 level is a very important support level for silver which has already been tested many times. In case silver manages to settle below this support level, it will gain additional downside momentum and head towards the next support area at $13.80 – $14.00.

Currently, silver is still in the rebound phase although it has been in a pullback mode since mid-April. The breach of the $14.60 level will put this rebound to an end, and a new downside trend will begin.

On the upside, silver faces resistance at the 20 EMA near $15.00 followed by the 50 EMA near $15.50. If silver manages to get above these resistance levels, it will likely gain additional upside momentum and quickly head towards the test of the April highs at $15.80. In this scenario, a successful test of these highs looks likely.