Vladimir Zernov
Add to Bookmarks

Silver Video 24.07.20.


Silver Tries To Continue The Upside Move As Gold Rallies

Silver continues to trade near $23.00 as the U.S. dollar is losing ground against a broad basket of currencies while gold is testing the $1900 level.

Know where Silver is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The U.S. Dollar Index is trying to settle below the March low at 94.65. If this attempt is successful, U.S. dollar main gain more downside momentum which would be bullish for silver and other precious metals.

Meanwhile, gold has managed to get above $1900 per ounce on a spot basis. For gold, all-time highs are now in sight. Gold’s RSI is in the extremely overbought territory but the upside momentum is still strong. However, significant risks of a pullback certainly exist.

Gold/silver ratio has settled near the 83 level after testing the lows near 81 in the previous trading sessions. Gold/silver ratio has made a major downside move in July so it will likely try to consolidate at new levels before making another move.

In my opinion, near-term silver price dynamics may be dependent on U.S. dollar which is trying to get below March lows. The recent silver rally was very significant so silver needs additional upside catalysts to continue its upside move without a major pullback.

A sell-off in the U.S. dollar could be such a catalyst, but it remains to be seen whether the U.S. Dollar Index will be able to settle below 94.65 and develop more downside momentum.

Technical Analysis

Silver managed to find support at $22.25 and tries to continue the upside move. The nearest resistance for silver is located in the $23.00 – $23.25 area.

In my opinion, this resistance level has the potential to become a major obstacle on the way up for silver.

As I noted above, silver will likely need additional weakness of the U.S. dollar to get above this resistance level in the near term. RSI is in the overbought territory and silver needs more catalysts to continue the major rally without any pullback.

On the support side, a move below the first support level at $22.25 will likely lead to more profit-taking and push silver towards the next support level at $21.15.

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

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker