Silver Price Daily Forecast – Silver Tests The Major Resistance At $19.00Silver gained strong upside momentum and tries to settle above yearly highs.
Silver Video 09.07.20.
Silver Investment Demand Increases By 10% In The First Half Of This Year
Silver is testing the major resistance level at $19.00 as gold continues its upside move while the U.S. dollar loses ground against a broad basket of currencies.
Spot gold has recently crossed the $1800 mark and continues to move higher. Gold’s upside is a major positive catalyst for all precious metals as it attracts more investment into the segment.
In fact, recent data from The Silver Institute indicated that silver investment demand increased by 10% in the first half of 2020. Industrial demand declined but started to pick up from May as economies began to reopen.
Importantly, The Silver Institute predicts that global silver mine supply will drop by 7% in 2020 which is bullish news for silver, especially if industrial demand gets closer to normal levels.
Gold/silver ratio continues its downside move and has settled below 96. Before the pandemic, gold/silver ratio was lower than 90 so there is certainly more room for downside if the market situation normalizes.
Today, silver gets additional support from the U.S. dollar which remains in a downside trend. The U.S. Dollar Index has declined below 96.5 and looks ready to test the 96 level. Weaker U.S. dollar is bullish for silver as it makes it cheaper for buyers who have other currencies.
Silver gained significant upside momentum and tries to get above the major resistance level at $19.00. RSI is not in the extremely overbought territory so silver may have more room to run in case gold continues its upside move while the U.S. dollar declines against a broad basket of currencies.
In this case, silver will get above $19.00 and head towards the next resistance level at $19.50. Such a move may be fast since silver’s momentum is strong.
On the support side, the nearest support level for silver is located at the previous resistance near $18.50. A move below this level will open the way to the next support level at the 20 EMA at $18.00.
From a big picture point of view, silver’s upside trend looks solid as it is supported by both technicals and fundamentals.
For a look at all of today’s economic events, check out our economic calendar.