Silver Price Daily Forecast – Test Of Support At $22.90

Silver Video 24.11.20.

Silver And Gold Are Under Serious Pressure

Silver gained strong downside momentum and made an attempt to settle below the support at $22.90 while the U.S. dollar remained mostly flat against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to get below the major support at 92.10 but failed to develop sufficient downside momentum and rebounded closer to 92.50. If the U.S. Dollar Index settles above 92.50, it will head towards the next resistance level at the 20 EMA at 92.75 which will be bearish for silver and other precious metals.

Silver and gold price today are also influenced by the official start of the transition process in the U.S., as well as Biden’s decision to nominate the former Fed Chair Janet Yellen as Treasury Secretary.

Janet Yellen is known for her dovish views which is bullish for precious metals in the longer term. However, the current traders’ optimism decreases demand for safe haven assets which hurts silver.

Gold managed to get below the major support area at $1850 – $1860 and immediately developed strong downside momentum. Currently, gold is trying to settle below the support at $1815. If this attempt is successful, gold will move towards the next support at $1790 which will be bearish for silver.

Gold/silver ratio continues its attempts to settle above the 50 EMA at 77.90. If gold/silver ratio manages to settle above this level, it will head towards the 80 level which will put additional pressure on silver.

Technical Analysis

Silver managed to get below the support at $23.30 and is trying to settle below the next support level at $22.90.

If this attempt is successful, silver will head towards the support at October lows at $22.60. A successful test of this level will open the way to the next support near $22.40.

On the upside, the previous support level at $23.30 will likely serve as the first resistance level for silver. If silver manages to settle above this level, it will gain upside momentum and head towards the next resistance at $23.90.

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