Silver Price Daily Forecast – Silver Tries To Settle Above $24.00

Silver Video 02.10.20.

Silver Tries To Gain More Ground Despite Stronger U.S. Dollar

Silver made another attempt to settle above $24.00 as the news about Trump’s positive COVID-19 test provided some support to precious metals.

However, the U.S. dollar strengthened against a broad basket of currencies and somewhat offset the positive impact of increased safe-haven demand for precious metals.

Currently, the U.S. Dollar Index is trying to settle above the nearest resistance level at the 50 EMA at 93.90. If this attempt is successful, the U.S. Dollar Index will gain upside momentum and head towards the next resistance level at 94.20 which will be bearish for silver.

At this point, gold stays above the $1900 level. However, gold did not manage to develop upside momentum above the nearest resistance at the 20 EMA at $1910. If gold moves above this level, it will head towards the $1950 level, providing support to silver and other precious metals.

Gold/silver ratio has declined back below the 80 level which is bullish for silver. The main support level for gold/silver ratio is still located at the 50 EMA at 78.35, and a move below this level will provide material support to silver.

Technical Analysis

Silver is currently trying to get above the $24 level. If this attempt is successful, silver will head towards the nearest resistance which has emerged at $24.15. A successful test of the resistance at $24.15 will lead to increased upside momentum and push silver closer to the significant resistance level at the 50 EMA at $24.70.

The 20 EMA is located at $24.85 so silver will likely face strong resistance in the $24.70 – $24.85 area. In case silver gets above this resistance area, it will head towards the next resistance at $25.85.

On the support side, the nearest support level for silver is located at $23.30. This level has been tested several times during the recent trading sessions and proved its strength.

If silver manages to settle below $23.30, it will have a good chance to return to its previous upside mode. In this scenario, silver will gain additional downside momentum and move towards the next support level at $22.30.

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