Silver Price Daily Forecast – Silver Pulls Back But Stays Near $27.00Silver tested the support level near $26.20 and rebounded closer to $27.00.
Silver Video 14.08.20.
Rising Gold/Silver Ratio Puts Pressure On Silver
Silver pulled back from recent highs but continues its attempts to settle above $27.00 as the U.S. dollar is losing ground against a broad basket of currencies while gold/silver ratio is rebounding from recent lows.
The U.S. Dollar Index is once again under pressure amid uncertainty over the fate of the next U.S. coronavirus aid package. Today’s U.S. Retail Sales report, which indicated that Retail Sales increased by 1.2% compared to analyst consensus of 1.9%, did not provide support to the American currency. Weaker dollar is bullish for precious metals.
Gold is flat as it tries to settle above the 20 EMA at $1940 and continue its upside move. Additional weakness of the U.S. dollar may provide some boost to gold but it is not clear whether gold will be able to gain any momentum ahead of the weekend.
Meanwhile, gold/silver ratio has rebounded back above 72, putting some pressure on silver. Still, gold/silver ratio is not far from lows at 69.50 which were reached at the beginning of August. In case gold/silver ratio continues its downside trend, silver will have good chances to get to the test of the recent highs near the $30 level.
Silver faced resistance at $27.75 and pulled back closer to $27.00. While silver has quickly rebounded from the recent lows near $23.50, RSI has declined to moderate levels so there is plenty of room to gain more upside momentum.
In case silver manages to settle above the resistance at $27.75, it will gain more upside momentum and head towards the recent highs at $29.85. While there are huge gaps between levels, some resistance will likely present itself below $29.85.
On the support side, silver has just tested the nearest support level near $26.20. This support level looks strong, and silver quickly rebounded back to $27.00 after touching a low at $26.31.
In case silver gets below the support at $26.20, it will gain downside momentum and head towards the next support at the 20 EMA at $24.95. If silver is able to settle below the 20 EMA, the current upside momentum will come to an end.
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