Silver Price Daily Forecast – Silver Retreats As Dollar Rallies

Silver Is Under Huge Pressure After Strong U.S. Non Farm Payrolls Report

Silver is currently trying to settle below the support at $24.20 while U.S. dollar is gaining ground against a broad basket of currencies.

The U.S. Dollar Index managed to get above 92.50 and is moving towards the resistance level at 92.80. The U.S. Dollar Index gained strong upside momentum after Non Farm Payrolls report indicated that U.S. economy added 943,000 jobs in July compared to analyst consensus of 870,000. In case the U.S. Dollar Index manages to get above 92.80, it will head towards the resistance at 93.10 which will be bearish for silver and gold price today.

Meanwhile, Treasury yields are moving higher as traders bet that Fed would cut its asset purchase program in 2021. Higher yields are bearish for precious metals that pay no interest.

Not surprisingly, gold is also under strong pressure. Gold has recently managed to get below the support at $1775 and is heading towards the next support level at $1750. If gold gets to the test of this level, silver will find itself under more pressure.

Meanwhile, gold/silver ratio gained strong upside momentum and managed to get above 72.50. The next resistance level is located at 73. If gold/silver ratio manages to get above this level, it will head towards recent highs at 73.35 which will be bearish for silver.

Technical Analysis

Silver managed to get below the support at $24.50 and is trying to settle below the next support level at $24.20. In case this attempt is successful, silver will head towards the support at $24.00.

A move below $24.00 will open the way to the test of the support at $23.80. If silver declines below this level, it will head towards the support at $23.50.

On the upside, the previous support at $24.50 will serve as the first resistance level for silver. If silver manages to settle back above this level, it will head towards the resistance at $24.70. A successful test of this level will push silver towards the next resistance level at $25.00.

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