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Silver Price Daily Forecast – Strong Dollar And Rising Yields Put Pressure On Silver

Vladimir Zernov
·2-min read

Silver Video 03.03.21.

Silver Remains Under Pressure

Silver managed to settle below the 50 EMA at $26.45 and is moving towards the next support at $25.85 while the U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index found support at the 50 EMA at 90.70 and rebounded above the resistance at 90.90. Currently, the U.S. Dollar Index is heading towards the next resistance level at 91.10.

If the U.S. Dollar Index settles above this level, it will head towards the resistance at 91.30 which will be bearish for silver and gold price today. Stronger dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.

Gold continues to move lower and is trying to get to the test of the $1700 level. RSI has recently moved into the oversold territory but there is still plenty of room to gain additional downside momentum in case the right catalysts emerge. If gold manages to settle below $1700, it will gain additional downside momentum which will be bearish for silver.

Gold/silver ratio continues its attempts to settle above the resistance at 65.50. The next resistance level is located at the 20 EMA at 66.15. If gold/silver ratio manages to get above the 20 EMA, silver will find itself under additional pressure.

Meanwhile, U.S. Treasury yields continue to rebound after the recent pullback, which is bearish for precious metals that pay no interest.

Technical Analysis

Silver declined below the 50 EMA at $26.45 and is moving towards the support level which is located at $25.85. Yesterday, silver found strong support at this level, but it may have a better chance to settle below $25.85 on the second attempt.

A move below this level will push silver towards the next support at $25.55. In case silver declines below the support at $25.55, it will head towards the support level which is located at $25.20.

On the upside, silver needs to get back above the 50 EMA to have a chance to gain upside momentum in the near term. If silver settles above this level, it will get to the test of the next resistance at $26.70. A move above the resistance at $26.70 will push silver towards the resistance which is located near the 20 EMA at $27.00.

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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