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Silver Price Daily Forecast – Silver Is Volatile After U.S. Inflation Exceeds Expectations

By:
Vladimir Zernov
Updated: May 12, 2021, 14:19 UTC

Silver failed to settle above the resistance at $27.75 and moved closer to $27.50.

Silver

In this article:

Silver Video 12.05.21.

Strong Dollar Puts Some Pressure On Silver

Silver is currently trying to get back above the resistance at $27.50 while trading remains volatile after U.S. inflation reports indicated that inflation was rising faster than expected.

Inflation Rate increased by 4.2% year-over-year compared to analyst consensus which called for growth of 3.6%. Core Inflation Rate grew by 3% compared to analyst consensus of 2.3%.

The U.S. Dollar Index moved higher after the release of U.S. inflation reports and made an attempt to settle above the resistance at 90.50. This attempt was followed by a quick sell-off, but the U.S. Dollar Index has once again managed to get back to the resistance at 90.50. In case the U.S. Dollar Index settles above this level, it will head towards the next resistance at 90.70 which will be bearish for silver and gold price today.

Gold was also volatile. It has made an attempt to get to the test of the resistance at $1850 but failed to develop upside momentum and pulled back. In case gold settles above $1850, it will gain additional upside momentum which will be bullish for silver and other precious metals.

Gold/silver ratio remains in the 66 – 67 range. Volatility has declined in recent trading sessions, but gold/silver ratio is slowly moving lower which is bullish for silver.

Technical Analysis

silver may 12 2021

Silver failed to settle above the resistance at $27.75 and pulled back closer to the support at $27.50. The next support level for silver is located at $27.00.

In case silver declines below the support at $27.00, it will move towards the next support level which is located near the 20 EMA at $26.65. A successful test of this level will open the way to the test of the support at $26.30.

On the upside, silver needs to get back above $27.50 to have a chance to get to the test of the resistance at $27.75. If silver moves above this level, it will gain additional upside momentum and head towards the next resistance at $28.30. A move above this level will push silver towards the resistance at $28.90.

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

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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