Silver Price Daily Forecast – Weak Dollar Supports Silver

Silver Video 25.11.20.

Silver Rebounds After Recent Sell-Off

Silver is trying to settle above the nearest support level at $23.30 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index has recently made another attempt to settle below the major support level at 92.10 but failed to gain sufficient downside momentum.

The support at 92.10 is a very important level for precious metals as the U.S. Dollar Index will likely gain significant downside momentum once it is able to settle below this level. Weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

The U.S. has recently reported that Initial Jobless Claims increased from 748,000 (revised from 742,000) to 778,000 which signals that the second wave of the virus has started to put pressure on the job market.

It remains to be seen whether the latest job market data will increase demand for safe haven assets, but it looks like it provides some support for silver and gold price today.

Gold managed to find support at $1800 after a major sell-off and is trying to gain some upside momentum. The nearest resistance level for gold is located at $1815, and a move above this level will be bullish for silver and other precious metals.

Gold/silver ratio failed to settle above the resistance at the 50 EMA at 77.90 which is good for silver. If gold/silver ratio manages to settle below the support at the 20 EMA at 77.50, it will head towards the next support at 76.50, providing additional support to silver.

Technical Analysis

Silver received support at $22.90 and is trying to gain additional upside momentum above the resistance at $23.30. If silver manages to settle above this level, it will head towards the next resistance at $23.90.

A move above the resistance at $23.90 will push silver towards the major resistance at the 50 EMA at $24.30 although it may also face some resistance at the 20 EMA at $24.10.

On the support side, a move below $23.30 will push silver back to the recent lows near $22.90. If silver declines below $22.90, it will head towards the next support at $22.60.

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