Yahoo Finance Silver Price Daily Forecast – Silver Dives Below $18.00
Silver Video 02.07.20.
Solid U.S. Non Farm Payrolls Report Puts Pressure On Precious Metals
Silver is under pressure after the release of better-than-expected U.S. Non Farm Payrolls report which provided major support to the equity market and caused a sell-off in gold.
The report showed that the U.S. economy added 4.8 million jobs in June compared to analyst consensus of 3 million. Not surprisingly, the markets have interpreted this report as a major sign that a robust recovery is just around the corner so risk assets gained ground while safe haven assets found themselves under pressure.
Gold, which has recently tried to get close to the $1800 level, has declined closer to the key $1750 level. In fact, the whole precious metal segment is under pressure as silver, platinum and palladium are also losing ground.
Gold/silver ratio rebounded a bit but stays below the 20 EMA at 99.10. Gold/silver ratio has been mostly flat since mid-June although it made several attempts to get away from the 20 EMA level. At this point, it looks like additional catalysts are necessary to move gold/silver ratio in either direction.
Recently, silver tried to get above $18.50 as gold was rallying towards new highs but this attempt was not successful. Nevertheless, silver maintains solid chances to continue the upside move due to rampant money-printing from the world central banks and traders’ desire to use precious metals as a hedge against a potential equity market sell-off.
Technical Analysis
Silver failed to settle above $18.50 and declined below $18.00. Importantly, silver did not found material support at $18.00 which has previously served as a resistance level.
Currently, silver is trading in the range between the support at $17.50 and the resistance near $18.50. In addition to the support level at $17.50, silver may also get some support at the 20 EMA at $17.70.
A move below $17.50 will likely lead to a rapid sell-off since it is highly likely that many traders have put their protective stops below this important level.
On the upside, silver will have to get above the resistance near $18.50 to continue the current upside trend and head towards the test of the major resistance level at $19.00.
While the recent downside move is disappointing for silver bulls, the upside trend remains intact, and silver still has decent chances to get to the test of yearly highs at $19.00.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
