Silver Price Daily Forecast – Silver Tests Yearly Highs

Silver Video 15.07.20.

Silver Managed To Settle Above $19.00

Silver continues its attempts to gain more upside momentum above $19.00 as the U.S. dollar loses ground against a broad basket of currencies while gold trades near yearly highs.

The U.S. dollar is under pressure as demand for safe haven assets decreases amid COVID-19 vaccine hopes. The U.S. Dollar Index declined below the 96 level and is testing lows that were reached in June.

In case U.S. Dollar Index continues its downside move, silver and other precious metals will get an additional boost as weaker dollar makes them cheaper for buyers who have other currencies.

Meanwhile, gold settled above the $1800 level and continues its attempts to move higher. The fundamental situation is favorable for gold, and the continuation of its upside trend will provide support to the whole precious metal segment including silver.

Gold/silver ratio remains in a downside trend and has settled near the 94 level. Gold/silver ratio has not been at such levels since late February when it initiated the upside trend which ended near 126 during the acute phase of the coronavirus crisis. A continuation of this downside trend will be bullish for silver.

Technical Analysis

Silver continues to stay above the nearest support level at $19.00 and looks ready to continue its upside trend. The nearest resistance for silver is located at $19.50.

In case silver manages to settle above this resistance level, it will gain more upside momentum and head towards the next resistance at $20.00.

RSI is in the overbought territory but it has not reached highs seen during previous peaks in May, so silver has more room to develop momentum in case the right catalysts emerge.

On the support side, a move below the support at $19.00 will be a worrisome development for silver bulls due to the importance of this level. If this happens, silver may gain downside momentum and head towards the next support at $18.50.

At this point, silver maintains solid chances to develop more momentum as weak U.S. dollar and declining gold/silver ratio serve as bullish catalysts.

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