Silver Price Daily Forecast – Silver Tries To Break Out Of The Recent Trading RangeSilver managed to settle above the resistance level at $27.75 and tries to continue its upside move.
Silver Video 31.08.20.
U.S. Dollar Weakness Continues To Provide Support To Silver
Silver managed to get above the resistance at $27.75 and is trying to settle above $28.00 as the U.S. dollar is losing ground against a broad basket of currencies while gold/silver ratio is declining towards the 70 level.
The U.S. Dollar Index has firmly settled below 92.50 and is trying to breach the nearest support level at 92.10. If this happens, the American currency will gain more downside momentum which will be bullish for silver and other precious metals.
Meanwhile, gold managed to settle above the 20 EMA at $1945 which is a bullish development for the whole precious metal segment. In case gold continues its upside move, silver will have good chances to get above the next resistance at $28.50.
Gold/silver ratio is trying to get out of the previous range between 71 and 73 and looks ready to test the 70 level. This August, gold/silver ratio found a bottom near 69.50, and a move below this level will be bullish for silver.
I’d note that rising U.S. government bond yields did not put any material pressure on the precious metal segment as the market was focused on U.S. dollar weakness after Fed’s decision to adopt an average inflation target of 2%. In this situation, the U.S. dollar dynamics will likely serve as a major catalyst for silver in the upcoming trading sessions.
Silver is currently trying to get more upside momentum above $28.00. In case this attempt is successful, silver will head towards the nearest resistance level at $28.50.
A successful test of the resistance at $28.50 will open the way to the next resistance level at multi-year highs at $29.85. Despite the recent upside, RSI remains in the moderate territory so there is plenty of room to gain more momentum, especially if the U.S. dollar breaks to new lows.
On the support side, the previous resistance at $27.75 will likely serve as the first important support level for silver. A move below this level will open the way to the test of the next support at the 20 EMA at $26.45.
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