Silver Price Daily Forecast – Silver Rebounds After Sell-OffSilver got support near $17.20 and tries to settle back above $17.50.
Silver Video 08.06.20.
Silver Attempts To Get Back Above $17.50
Silver is trying to settle back above $17.50 as it attempts to regain ground that was lost during the sell-off on Friday.
Silver’s upside momentum was damaged by better-than-expected U.S. Non Farm Payrolls and Unemployment Rate reports which provided hope that the U.S. economy may rebound sooner than previously anticipated.
Gold also tries to recover from the recent sell-off and stays close to the key $1700 level. Gold’s ability to stay near this level is very important for the whole precious metal segment.
At this point, gold has material support in the range between $1680 and $1700. In case this support holds well, the precious metal segment may be positioned for another upside move.
Meanwhile, gold/silver ratio met resistance near 97 and is back to the downside mode. Before the coronavirus hit the world economy, gold/silver ratio was below 90, and a return to pre-crisis levels will lead to significant upside for silver.
The U.S. Dollar Index is mostly flat today so the dynamics of the American currency do not impact silver’s trading.
Silver is recovering from Friday’s sell-off and is trying to settle back above $17.50. In case this attempt is successful, silver will likely gain upside momentum and head towards the test of the nearest resistance level below $18.50.
A successful test of the resistance at $18.50 will open the way to the test of the major resistance level at $19.00. Thanks to the recent pullback, RSI has left the overbought territory, and silver should not have problems with upside momentum in case the right catalysts emerge.
On the support side, the recent pullback was stopped at $17.20, which will serve as the first support level for silver. In my opinion, silver may count on major support near $17.00 as this level has been tested many times during the previous pullback attempt.
In case silver gets below $17.00, it will gain additional downside momentum and head towards pre-crisis levels at $16.50. The 50 EMA is located in the nearby, so $16.50 is set to be an important level for silver in case of a downside move.
For a look at all of today’s economic events, check out our economic calendar.