Silver Price Daily Forecast – Silver Moves Lower As Treasury Yields Rise

Silver Video 29.04.21.

Test Of Support At $25.80

Silver has recently made another attempt to settle above the resistance at $26.30 but lost momentum and pulled back towards the support at the 50 EMA at $25.80 while the U.S. dollar gained some ground against a broad basket of currencies.

The U.S. Dollar Index is currently trying to settle above the resistance at 90.70. In case this attempt is successful, the U.S. Dollar Index will gain additional upside momentum and head towards the next resistance level which is located at 91.

Gold gained downside momentum and is testing the support at the 50 EMA at $1765. Yesterday, the Fed left the interest rate unchanged and stated that it was not worried about higher inflation as any price spikes should be temporary. Bond traders look rather worried about rising inflation, and the yield of 10-year Treasuries is trying to settle above 1.68% which is bearish for precious metals. If gold settles below the 50 EMA, it will gain additional downside momentum which will put pressure on silver.

Gold/silver ratio is trying to get above the resistance at the 20 EMA at 68.35. The 50 EMA is in the nearby so gold/silver ratio will likely face strong resistance in this area. In case gold/silver ratio settles above the 50 EMA, it will move towards the 69 level which will be bearish for silver.

Technical Analysis

Silver did not manage to settle above the resistance at $26.30 and is testing the support level at the 50 EMA at $25.80. This support level has already been tested many times and proved its strength. However, silver had decent chances to get below this level as Treasury yields have moved higher in recent trading sessions.

If silver settles below the 50 EMA, it will move towards the support at $25.55. A move below this level will open the way to the test of the support at $25.30. In case silver declines below the support at $25.30, it will head towards the next support at $25.00.

On the upside, the nearest resistance level is located at $26.30. If silver manages to settle above this level, it will head towards the next resistance at $26.65. A successful test of this level will push silver towards the resistance at $27.00.

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