Silver Price Daily Forecast – Silver Volatility Decreases Ahead Of The Weekend

Silver Video 24.04.20.

Silver Stays Stuck In A Range

Silver continues to trade in a range between the 20 EMA at $15.10 and the 50 EMA at $15.50 as markets digest the new U.S. economic data and U.S. Dollar Index stays in the 100 – 101 range.

Yesterday, I wrote that as the range between the 20 EMA and the 50 EMA narrowed, traders should expect more action in the next few weeks. Currently, volatility seems to decrease following the rapid downside move which happened earlier this week, but this may quickly change given the right catalysts.

Gold continues its upside move and stays above $1700, which is a bullish factor for the whole precious metal segment. I maintain my expectations that the gold price rally will ultimately lead to an influx of new investor money into the whole precious metal segment and benefit silver.

At this point, silver is lagging gold since the latter receives more investment demand while silver prices materially depend on industrial demand which will be hit this year.

However, investment demand for silver is also set to increase as governments continue to print money at a record pace as they try to mitigate the economic crisis brought by coronavirus containment measures.

You can’t print gold or silver so some uptick in investment demand for the whole precious metal segment is guaranteed, and the size of this uptick is the only question.

At the same time, silver has shown that it is rather sensitive to the general market mood, and a rapid sell-off in global markets may put significant pressure on silver.

Technical Analysis

Silver volatility decreased and it continues to trade in a rather tight range between the 20 EMA at $15.10 and the 50 EMA at $15.50.

In case silver manages to settle above the 50 EMA, it will head towards the next resistance level near the recent highs at $15.80.

On the support side, the breach of the support level at 20 EMA will take silver back to the recent lows at $14.60.

The upcoming trading sessions will be very important for silver as it looks ready to make a move. The current trend is to the upside, and the recent pullback was quickly bought, so it looks like an upward breakout is a more plausible scenario.