Silver Price Daily Forecast – Silver Stays Near Resistance At $23.00 – $23.25Silver found support at $22.25 and continues its attempts to gain more upside momentum.
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.
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.
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.
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