Silver Price Daily Forecast – Silver Rallies Above $28.00Silver gained additional upside momentum and managed to get above $28.00.
Silver Video 06.08.20.
Silver Gets To New Highs As Precious Metals’ Rally Continues
Silver rallied above $28.00 as gold reached new highs while gold/silver ratio declined below 73.
The rally in the precious metals space continues despite U.S. dollar’s attempts to rebound.
The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, did not manage to settle below the nearest support level at 92.50 and rebounded closer to 93.
Typically, stronger dollar is a bearish catalyst for precious metals as it makes them more expensive for buyers who have other currencies.
However, the upside trend in gold and silver is so strong that traders completely ignore dollar’s attempts to rebound.
Spot gold has set a new record and continues to move higher as traders rush to join the strong momentum.
Interestingly, gold/silver ratio continued its downside move and is currently trying to settle below 73. During the acute phase of the coronavirus crisis, gold/silver ratio was above 125.
Gold/silver ratio has not been that low since 2017. I’d also note that gold/silver ratio reached a low at 31.70 back in 2011 when silver prices managed to get close to the $50 level.
Silver continues its major upside move. It has been above to settle above the previous resistance level at $27.00 and climbed above $28.00.
As I noted in my previous article on the topic, silver has not traded at these levels for many years so resistance levels of the past have no relevance for today’s trading.
Thus, traders will have to follow the momentum closely, looking for signs of exhaustion.
RSI is in the extremely overbought territory which is not suprising given the strength of the current upside move.
The nearest support level for silver is located at the previous resistance level at $27.00. In case silver manages to settle below this level, it will head towards the next support level at $26.20.
On the upside, silver has recently faced resistance near $28.50, but it remains to be seen whether this level will be a major obstacle on the way up.
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