Silver Price Daily Forecast – Silver Stays Above $28.00

Silver Video 10.08.20.

Silver Shows Strength As Gold/Silver Ratio Continues To Decline

Silver managed to stay above $28.00 despite the rebound of the U.S. dollar and some softness on the gold price front as gold/silver ratio continued its downside move.

The U.S. Dollar Index has managed to gain some ground amid increased U.S. – China tensions but it is not clear whether it will be able to settle above 93.50.

In case the U.S. Dollar Index manages to gain some momentum above 93.50, it will have a chance to test the 20 EMA level at 94.20.

Such scenario would be bearish for silver and other precious metals as stronger U.S. dollar makes them more expensive for buyers who have other currencies.

Meanwhile, gold has pulled back from recent highs at $2075 but continues to trade above the psychologically important $2000 level.

Gold’s pullback is not suprising since it made a move from $1800 to $2075 without any material correction, and it remains to be seen whether the current softness will turn into something more serious as demand for gold remains high.

Gold/silver ratio has settled near the 71 level, providing additional support to silver. Gold/silver ratio’s RSI is in the oversold territory but all recent attempts to rebound were not successful, highlighting the strength of the current downside move. In case gold/silver ratio drops below 70, silver will have good chances to settle above $30.00.

Technical Analysis

Silver stays above $28.00 and maintains good chances to continue the current upside move.

RSI remains in the overbought territory but it has declined from recent highs so silver may have more room to develop upside momentum.

As silver’s upside move was very fast, there are significant gaps between levels. On the upside, the nearest resistance level is located at the recent highs at $29.85, although silver may face some additional resistance below this level.

A move above $29.85 will help silver gain more momentum and head to new highs

On the support side, the nearest support level is located near $27.80. In case silver manages to settle below this level, it will likely gain additional downside momentum and head towards the next support level at $27.40.

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