Silver Price Daily Forecast – Silver Rebounds After Yesterday’s Sell-Off

Silver Video 05.02.21.

Silver Moves Higher On Weaker Dollar

Silver is currently trying to settle above the resistance at $26.70 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index did not manage to stay above the resistance level at 91.50 and pulled back towards the nearest support level at 91.30. If the U.S. Dollar Index settles below 91.30, it will head towards the next support at 91.10 which will be bullish for silver and gold price today. A weaker dollar provides support to precious metals as it makes them cheaper for buyers who have other currencies.

Meanwhile, gold made an attempt to settle above the $1800 level but lost momentum and declined below this level. The recent price action in the gold market is worrisome for silver bulls as gold remains under material pressure, and each attempt to gain upside momentum yields no results.

Gold/silver ratio is trying to settle below the low end of the recent range between 68 and 69. This is an interesting development as the recent decline in gold/silver ratio was triggered by an increase of the speculative activity of retail traders which has mostly come to an end. If gold/silver ratio gains additional downside momentum, silver will get more support.

Technical Analysis

Silver managed to settle above the 20 EMA at $26.25 and is testing the resistance level at $26.70. If this test is successful, silver will move towards the next resistance level at $27.00.

A move above the resistance at $27.00 will open the way to the test of the resistance at $27.50. In case silver manages to get above this level, it will head towards the next resistance level at $27.75.

On the support side, the nearest support level for silver is located at the 20 EMA at $26.25. If silver declines below this level, it will head towards the next support level at $25.85. A move below $25.85 will push silver towards the next support at the 50 EMA at $25.70.

For a look at all of today’s economic events, check out our economic calendar.