Silver Price Daily Forecast – Silver Tried To Settle Above $27 But Pulled Back

Silver Video 21.12.20.

Virus Fears Provided Support To Silver

Silver had a very volatile trading session today amid fears about new COVID-19 strain in UK. Currently, silver is trying to stay above the $26 level after trading as high as $27.40 while the U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index rallied on worries about the new strain but faced strong resistance at the 20 EMA at the 91 level and pulled back towards 90.50. Most likely, the U.S. Dollar Index will remain very volatile in the near term. The trading dynamics of the American currency had little impact on silver and gold price today because they were impacted by general demand for safe haven assets.

Gold made an attempt to settle above the $1900 level but failed to gain sufficient upside momentum. The nearest support level for gold is located at the 50 EMA at $1865. If gold settles below this level, it will gain downside momentum and head towards the next support level at the 20 EMA at $1855 which will be bearish for silver and other precious metals.

Gold/silver ratio tried to settle below the 70 level but received support at 69.75 and rebounded closer to the 72 level. If gold/silver ratio gets to another test of the recent lows at 69.75, will will get a boost.

Technical Analysis

Silver had a very volatile trading session today. It tested the support at $25.00 and got close to the resistance at $27.50. Levels inside this range were mostly ignored but they will be back in play once the situation calms down a bit.

The nearest support level for silver is located at $25.85. If silver declines below this level, it will get to the test of the next support at $25.55. A move below $25.55 will push silver towards the support at $25.30. In case silver gets below the support at $25.30, it will head towards the recent lows at $25.00.

On the upside, silver needs to get above the resistance at $26.30 to continue its upside move. The next resistance level is located at $27.00. If silver manages to settle above $27.00, it will gain additional upside momentum and move towards the next resistance level near the recent highs at $27.50.

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