Silver Price Daily Forecast – Support At $25.00 Remains StrongSilver tried to settle below the support at $25.00 but failed to develop sufficient downside momentum.
Silver Video 08.03.21.
Rising Treasury Yields Continue To Put Pressure On Silver
Silver has recently made another attempt to settle below the support at $25.00 while the U.S. dollar continued to gain ground against a broad basket of currencies.
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The U.S. Dollar Index gained strong upside momentum and is currently trying to settle above the resistance at 92.25. If this attempt is successful, the U.S. Dollar Index will move towards the next resistance level at 92.50 which will be bearish for silver and gold price today.
Meanwhile, gold continues to trade below the $1700 level as higher U.S. Treasury yields put pressure on precious metals that pay no interest. The nearest support level for gold has emerged near $1685. If gold manages to settle below this level, it will gain additional downside momentum which will be bearish for silver and other precious metals.
Gold/silver ratio has recently made an attempt to settle below the support at the 20 EMA at 66.40 but failed to develop sufficient downside momentum and moved back to the 67 level. The nearest significant resistance level for gold/silver ratio is located at the 50 EMA at 68.70. If gold/silver ratio gets to the test of this level, silver will find itself under more pressure.
Silver is currently testing the nearest support level at $25.00. While silver lost a lot of ground in recent trading sessions, RSI remains in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
If silver declines below the support at $25.00, it will move towards the next support level at $24.70. A successful test of the support at $24.70 will open the way to the test of the next support level at $24.50.
On the upside, the nearest resistance level for silver is located at $25.20. If silver gets above this level, it will head towards the next resistance at $25.55. A move above $25.55 will push silver towards the recent highs near $25.85.
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