Silver Price Daily Forecast – Silver Gains Ground At The Beginning Of The Week

Silver Video 01.03.21.

Silver Rebounds After Recent Sell-Off

Silver is currently trying to settle back above the resistance at $27.00 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the resistance level at 91.10 but failed to develop sufficient upside momentum. If the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at 91.30 which will be bearish for silver and gold price today.

Gold made an attempt to settle above $1750 but did not manage to gain sufficient upside momentum and declined towards $1740. The nearest support level for gold is located near the recent lows at $1720. If gold gets to the test of this level, silver will find itself under additional pressure. I’d note that the recent weakness of gold is a worrisome development for silver bulls as it indicates that money continues to move out of the precious metal segment.

Meanwhile, gold/silver ratio did not manage to settle above 65.50 and declined towards 64.50. A move below this level will push gold/silver ratio towards the support at the 64 level which will be bullish for silver.

Technical Analysis

Silver managed to settle above $26.70 and is trying to settle above the resistance at $27.00. If this attempt is successful, silver will get to the test of the 20 EMA near $27.10.

A move above the 20 EMA will open the way to the test of the resistance which is located at $27.50. In case silver settles above this level, it will move towards the next resistance at $27.75. A successful test of the resistance at $27.75 will push silver towards the next resistance which is located at the recent highs at $28.30.

On the support side, the nearest support level for silver is located at $26.70. In case silver declines below this level, it will head towards the support at the 50 EMA at $26.45. A move below the support at $26.45 will open the way to the test of the support at $25.85.

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