Silver Price Daily Forecast – Silver Moves Higher At The Beginning Of The Week

Silver Video 08.02.21.

Silver Starts The Week On A Strong Note

Silver managed to get above the resistance at $27.00 and is trying to settle above the next resistance level at $27.50 while the U.S. dollar is mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle back above the resistance at 91.10 but lost momentum and moved closer to the 91 level. If the U.S. Dollar Index settles below 91, it will gain downside momentum and head towards the 50 EMA at 90.85 which will be bullish for silver and gold price today. Weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Gold is currently trying to settle above the resistance at $1830. If this attempt is successful, it will head towards the next resistance level at the 20 EMA at $1845 which will be bullish for silver.

Gold/silver ratio managed to get below the 67 level and continues to move lower, providing additional support to silver. Gold/silver ratio was able to spend some time at the current levels back in 2016 but failed to move below 64.50, and it remains to be see whether the current downside move will be sustainable.

Technical Analysis

Silver settled above the resistance at $27.00 and is testing the next resistance level at $27.50. If this test is successful, silver will move towards the next resistance level which is located at $27.75.

In case silver gets above $27.75, it will head towards the resistance at $28.30. A move above this level will open the way to the test of the resistance at $28.90. It should be noted that silver ignored levels above $27.75 during the latest rally but these levels will likely be in play in case the pace of the next upside move is moderate.

On the support side, the previous resistance at $27.00 will likely serve as the first support level for silver. If silver declines below this level, it will head towards the next support at $26.70. A successful test of the support at $26.70 will open the way to the test of the support at the 20 EMA at $26.40.

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