Silver price daily forecast
While the U.S. dollar is under pressure versus a broad basket of currencies, silver is attempting to settle above the $24 mark.
The U.S. Dollar Index fell below the 20-day moving average at 93.85, attempting to settle below 93.50. If the U.S. Dollar Index falls below 93.50, it will go towards the support level at the 50-day moving average (EMA) at 93.40, which will be favourable for silver and gold prices today.
Meanwhile, gold has reclaimed the $1775 level and is attempting to build fresh upside momentum. The next level of resistance for gold is $1800. If gold is tested at this level, silver will gain more significant support.
After settling below the support of the 50 EMA at 75.90, the gold/silver ratio gained significant negative momentum. The gold/silver ratio is currently attempting to fall below the 74 levels. This move was the primary driver of today’s silver rally. It appears that traders hurried to buy silver to expect that the gold/silver ratio would continue to fall in future trading sessions. Silver has broken through the resistance level of $23.50 and attempts to break through the following resistance level of $23.90. If this attempt is successful, silver will move towards the resistance level of $24.30.
A break over $24.30 will pave the door for a resistance level test at $24.50. If silver can settle over $24.50, it will move towards the resistance level of $24.80.
Silver will fall to the $23.50 support level, near the 50 EMA if it falls below $23.90. If silver falls below the 50-day moving average, it will head towards the next support level at $23.20.
Oil price
Following a dramatic two-sided transaction earlier in the morning, West Texas Intermediate crude oil futures in the United States and worldwide benchmark Brent crude oil futures in London are mixed on Tuesday. In addition, the markets are attempting to recoup yesterday’s loss, which occurred while creating a potentially harmful technical closing price reversal top. The chart pattern shows that the selling is slightly more significant than the purchasing at current price levels. Some pullback is to be expected as markets approach seven-year highs, but the long-term outlook remains bright.
Short-term increases in U.S. output may restrict purchases, but current trade data indicates increased crude demand as economies recover from the pandemic.
Falling northern hemisphere temperatures are likely to keep oil, coal, and natural gas prices high. Rising coal and natural gas prices in Asia are projected to drive some end-users to seek lower-cost oil as an alternative. It will contribute to our long-term forecast of $100 crude by late December or early 2022.
