Silver Price Daily Forecast – Silver Is Under Serious Pressure On Vaccine News

Silver Video 09.11.20.

Silver Moves Lower As Traders Turn To Riskier Assets

Silver is losing ground today as positive vaccine news put material pressure on safe haven assets. Meanwhile, the U.S. dollar is mostly flat against a broad basket of currencies so silver is moving down without any impact from the dynamics of the American currency.

The U.S. Dollar Index has settled near 92.20 and is trying to get to the test of the nearest support level at 92.10. If the U.S. Dollar Index manages to settle below this level, it will gain additional downside momentum which may provide some support to silver and other precious metals.

Gold is also losing ground on vaccine optimism. Currently, gold is trying to get to the test of October lows at $1860. If gold moves below the support at $1860, it will head towards the next support level at $1850 which will be bearish for silver.

Gold/silver ratio failed to settle below the support at 75.50 and rebounded back above the 77 level. The nearest resistance level for gold/silver ratio is located at the 20 EMA at 78.10. If gold/silver ratio gets to the test of this level, silver will find itself under additional pressure.

Technical Analysis

Silver gained strong downside momentum and is currently testing the major support level at the 50 EMA at $24.45. If silver manages to settle below the 50 EMA, it will continue its downside move and head towards the next support level at $23.90.

RSI is far away from the oversold zone so there is plenty of room to develop downside momentum in case the right catalysts emerge. If silver declines below the support at $23.90, it will head towards the next support level at $23.30.

On the upside, the nearest material resistance level for silver is located at $25.00. If silver gets back above this level, it will gain upside momentum and head towards the resistance at October highs at $25.55.

In case silver manages to settle above $25.55, it will head towards the next resistance at $25.85 where it faced significant resistance in recent trading sessions.

For a look at all of today’s economic events, check out our economic calendar.