Daily Silver Price Forecast – Silver pulls back as government bond yields rise
Silver is under pressure
Silver is currently trying to level below the USD 23.20 support while the US dollar remains flat against a broad basket of currencies.
The US dollar index encountered resistance at 94.20 and pulled back. Currently, the US dollar index is trying to settle below the support at the 94 level. If successful, the US dollar index will move towards the 20 EMA at 93.85, which will be bullish for today’s silver and gold prices.
Meanwhile, gold is trying to settle below the 20 EMA at $ 1770. If gold manages to settle below the 20 EMA, it will move towards the large support level at $ 1750, which will be bearish for silver.
It should be noted that the 10-year Treasury yield has risen above 1.60% recently, putting some pressure on precious metals. The next level of resistance is at 1.64%. Should the 10-year Treasury yield test this level, silver will come under more pressure.
The gold / silver ratio tests resistance at the 50 EMA at 76. If this test is successful it will gain additional upside momentum and move towards 76.50 which will be bearish for silver.
Silver encountered strong resistance at $ 23.50 and pulled back towards the support at $ 23.20. Should silver settle below $ 23.20, it will be heading for the next level of support, which is at $ 22.80.
A successful test of the support at $ 22.80 will pave the way to the test of the support at $ 22.60. If silver breaks below this level, it will move towards the support at $ 22.30. Movement below $ 22.30 will push silver towards the next support level at $ 22.10.
On the flip side, silver needs to stay above $ 23.20 to develop upside momentum in the short term. The next resistance level is at $ 23.50. The 50 EMA is near, so silver will face strong resistance in the $ 23.40 to $ 23.50 range. If silver manages to move above $ 23.50, it will gain additional upside momentum and head for the next resistance level at $ 23.90.
You can find an overview of all today’s economic events in our economic calendar.