Silver Price Daily Forecast – Silver Holds Well Despite Sell-Off In Many Markets

Silver Video 20.04.20.

Silver Shows No Signs Of Weakness In A Challenging Day For Global Markets

Silver remained in a range between the 20 EMA near $15.00 and the 50 EMA at $15.60 while global markets turned red amid rapid downside move in crude oil prices.

Currently, the precious metal segment is ignoring the broader sell-off which is a good sign for silver and gold bulls. Both silver and gold are gaining ground despite the risk-off mode in the global markets.

The U.S. Dollar Index, which measures the strength of the American currency against a broad basket of currencies, is also little changed and continues to settle near the 100 level.

The absence of additional pressure from the U.S. dollar is positive for silver. The U.S. dollar is serving as a safe haven asset of last resort during the current crisis, and its strength makes silver more expensive for buyers who have other currencies.

It remains to be seen whether silver will also act as a safe haven asset in case today’s sell-off turns into something bigger. There’s plenty of economic data to digest this week, starting from U.S. Existing Home Sales which are set to be published on Tuesday, April 21, so the markets will likely be volatile.

Previously, general market weakness pushed silver lower since industrial demand is an important component of demand for silver. However, investment demand at times of unprecedented monetary stimulus may help silver hang on to current levels even if financial markets experience another downside move.

Technical Analysis

Silver received support near the 20 EMA and rebounds from $15.00. The 50 EMA level at $15.60 is the first resistance level for silver. In case silver manages to settle above this level, it will likely gain additional upside momentum and head towards pre-crisis levels at $16.50.

I’d expect some minor resistance near recent highs at $15.80, but I don’t think that this level will present a major problem in case silver gets above the 50 EMA.

On the support side, the breach of the 20 EMA level will take silver to $14.60, which was the previous resistance level and has become the new support level. There was a lot of interest in this area so I’d expect a major battle between bulls and bears in case silver reaches $14.60.