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Silver Price Daily Forecast – Silver Tries To Rebound As Demand For Safe-Haven Assets Increases

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Support At $22.10 Stays Strong

Silver is currently trying to settle back above $22.30 while U.S. dollar is gaining some ground against a broad basket of currencies.

The U.S. Dollar Index has recently made an attempt to settle above the resistance at 93.40 but failed to develop sufficient upside momentum and pulled back towards 93.30. In case the U.S. Dollar Index gets above 93.40, it will head towards yearly highs near 93.75 which will be bearish for silver and gold price today.

Meanwhile, gold continues its attempts to settle back above $1750. Today, gold benefits from increased demand for safe-haven assets amid global market sell-off. Treasury yields have moved lower as traders rushed to buy U.S. government bonds, providing additional support to gold. In case gold manages to settle above $1750, it will move towards the resistance level at $1775 which will be bullish for silver.

Gold/silver ratio managed to settle above 78.50 and is moving towards the 79 level. Gold/silver ratio gained strong upside momentum, and RSI moved into the overbought territory. However, there is plenty of room to gain additional upside momentum in case the right catalysts emerge. If gold/silver ratio gets to the test of the 79 level, silver will find itself under more pressure.

Technical Analysis

Silver tried to settle below the support level at $22.10 but lost momentum and moved back above $22.30. If silver settles above this level, it will move towards the resistance at $22.60.

A successful test of the resistance at $22.60 will push silver towards the next resistance level which is located at $22.90. If silver gets above $22.90, it will head towards the resistance at $23.20.

On the support side, silver needs to get back below $22.30 to have a chance to develop downside momentum in the near term. The next support level for silver is located near the recent lows at $22.10.

A move below $22.10 will open the way to the test of the support at $21.90. If silver manages to settle below this level, it will head towards the support at $21.65.

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

This article was originally posted on FX Empire

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