Silver Price Daily Forecast – Resistance At $26.30 Remains Strong

Silver Video 29.12.20.

Weak Dollar Fails To Provide Additional Support To Silver

Silver continues its attempts to settle above the nearest resistance level at $26.30 while the U.S. dollar remains under material pressure against a broad basket of currencies.

The U.S. Dollar Index is currently testing the nearest support level at 90. If the U.S. Dollar Index settles below this level, it will head towards the next support at the yearly lows at 89.75.

Typically, weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies. However, the weak dollar may fail to provide additional support to silver and gold price today as hopes for bigger stimulus checks decrease demand for safe haven assets.

Gold is currently testing the resistance at $1880. A move above this level will push gold towards the next resistance at the $1900 level which may provide some support for silver and other precious metals.

Meanwhile, gold/silver ratio is rebounding after yesterday’s sell-off. Gold/silver ratio managed to find support at 70.80. If gold/silver ratio gets below this level, it will move towards December lows at 69.75 which will be bullish for silver.

Technical Analysis

Silver is currently trying to settle above the nearest resistance level at $26.30. Silver has already made several attempts to settle above this level in recent trading sessions and even managed to get above $26.30 but failed to gain sufficient upside momentum.

The resistance near $26.30 remains strong, but silver will have a good chance to develop strong momentum once it manages to settle above this level. The next resistance for silver is located at $27.00. If silver moves above this level, it will head towards the next resistance at $27.50.

On the support side, the situation has not changed compared to the previous trading session. The nearest material support level for silver is located at $25.85. If silver gets below this level, it will head towards the next support at $25.55. A move below the support at $25.55 will open the way to the test of the next support which is located at $25.30.

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