Silver Price Daily Forecast – Silver Sets Multi-Year High At $29.85Silver managed to get close to $30.00 but then pulled back towards $28.00.
Silver Video 07.08.20.
Silver Continues To Rally
Silver almost managed to test the $30.00 level but then declined closer to $28.00 as gold/silver ratio continued to fall while the U.S. dollar showed signs of a rebound.
Gold/silver ratio declined below 70 at one point but then lost downside momentum and rebounded above 72. Gold/silver ratio has not been that low since 2017.
A move in gold/silver ratio was the main catalyst for silver’s move towards $30.00 as gold remained mostly flat near all-time highs.
In case the downside trend in gold/silver ratio continues and it manages to settle below the 70 level, silver will have good chances to break above $30.00 and get to new highs.
Meanwhile, the U.S. dollar is showing some strength. The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has managed to settle above the 93 level and is moving towards 93.50.
U.S. Unemployment Rate declined to 10.2% while the Non Farm Payrolls report indicated that 1.76 million jobs were created in July.
While the recent employment data is rather optimistic, the U.S. economy clearly needs more stimulus which supports the bullish thesis for precious metals.
Silver continued its upside move and set a new multi-year high at $29.85. As I noted before, past levels have no relevance for today’s price action so traders should watch support/resistance levels closely as they emerge.
As silver’s upside move was very fast, there are huge gaps between levels. The nearest support for silver is located near the low of today’s trading session at $27.50.
In case silver manages to get below this support level, it will head towards the next major support level at $26.20 although it may also get some support near $27.00.
On the upside, silver needs to get above the recent high at $29.85 to continue the upside move. Interestingly, RSI has declined from extreme levels so there is some room to build more momentum.
For a look at all of today’s economic events, check out our economic calendar.