Silver Price Analysis: XAG/USD bears can ignore latest bounce to 100-day SMA

  • Silver struggles to keep week-start gap-up but snaps three-day losing streak.
  • Bearish MACD, downbeat RSI joins sustained break of yearly support line, now resistance, to favor silver sellers.
  • Yearly low, 200-day SMA will be a tough nut to crack for bears.

Silver prices waver around $25.40, fading the initial run-up to $25.56, during Monday’s Asian session. In doing so, the white metal confronts 100-day SMA while also keeping the last week’s break of an ascending trend line from March 2020.

Given the bearish MACD and descending RSI line join the previous week’s downside break of the key support line and 100-day SMA, silver prices are likely to remain depressed.

However, fresh selling can wait until the bears conquer January 27 low near $24.70 as it triggered the commodity’s bounce during Friday.

Also acting as the strong downside barrier is a confluence of 200-day SMA and the yearly low near $24.20.

Meanwhile, a daily closing beyond the 100-day SMA level of $25.45 will need to cross the previous support line, at $25.80 now, to recall the silver buyers.

Following that, lows marked during late February around $26.20 should test the bulls targeting the monthly top beyond $27.00.


Silver Price Analysis: XAG/USD set to refresh yearly low, $25.00 tests the bears

Silver prices remain heavy near late January lows, currently down 0.23% around $25.30, during Friday’s Asian session. The white metal dropped the fresh bottom in multiple days after breaking an ascending trend line from November 30 the previous day.

The bearish bias also gains support from the metal’s failure to recover from recent lows while staying below 100-day SMA amid bearish MACD.

Hence, silver sellers are en route 200-day SMA level of $24.15. Though, 61.8% Fibonacci retracement of November 2020 to February 2021 upside, at $25.00, offers immediate support to the quote.


Silver falls to fresh five-week low as precious metals stay pressured

Silver down over 1% to the lows of $25.63 on the day

he drag in gold is also inadvertently having a negative pull on the likes of silver and platinum lately and we are seeing more of that today as well with silver having fallen to its lowest levels since 28 January below $26.
The drop pushes silver towards a test of key trendline support @ $25.65 and also brings into focus the 100-day moving average (red line) @ $25.43.
Those will be key lines in the sand for silver buyers to hang on to in order to keep the upside momentum running, after having seen year-to-date gains erased this week after having jumped to $30 at the start of February.
The dollar’s resilience so far today is also part of the story but precious metals haven’t really been getting much love – especially gold – as of late.
Silver ETFs may not have declined as drastically as gold but they have eased off since peaking in early February amid the surge in demand and retail trading frenzy at the time.


Silver Consumption in Global Automotive Sector to Approach 90 Million Ounces By 2025; Should Challenge Silver Usage in Photovoltaic Industry

With modern cars using more silver than ever in their
advanced technology components, the worldwide
automotive sector could need nearly 90 million ounces
(Moz) annually of the metal by 2025, according to a
recently-published report by the Silver Institute.
In four years, silver consumption in the automotive
sector should rival that of the photovoltaic industry,
forecast to reach 98 Moz in 2025, and currently the
largest application of global industrial silver demand,
according to the report Silver’s Growing Role in the
Automotive Industry, produced on behalf of the Silver
Institute by Metals Focus, an independent precious metals
The report, part of the Silver Institute’s series of Market
Trend Reports, examines trends in automotive production,
including the growth and evolution of hybrid and battery
electric vehicles. It also addresses transportation policies
that favor vehicle electrification in some of the world’s
most important vehicle markets.


Silver Price Daily Forecast – Resistance At $24.55 Proved Its Strength

Silver failed to settle above the 50 EMA at $24.55 and is trying to gain downside momentum.

Silver Failed To Gain Upside Momentum Despite Weaker U.S. Dollar

Silver continues to trade below the 50 EMA at $24.55 while the U.S. dollar is losing ground against a broad basket of currencies.

The U.S. Dollar Index failed to settle above the nearest resistance level at 93 but managed to stay above the nearest support level at 92.80. If the U.S. Dollar Index gets below the support at 92.80, it may gain additional downside momentum and provide some support to silver and other precious metals.

Meanwhile, gold is glued to its 50 EMA level just above $1900. This month, gold failed to develop any momentum. Perhaps, traders did not want to make major bets before the U.S. presidential election which may significantly increase volatility in the precious metal space.

Gold/silver ratio continues to test the nearest resistance at its 50 EMA at 78.25. If gold/silver ratio settles above this resistance level, it will gain additional upside momentum and head towards the 80 level which will be bearish for silver.


Silver Just Had Its Best Month In 40 Years: Here Are July’s Best And Worst Performing Assets

by Tyler DurdenMon, 08/03/2020 – 13:22

When looking at the torrid market performance in July, Deutsche Bank’s Jim Reid notes that silver (+35%) had its best month since December 1979 while the dollar the worst for a decade. US equities had a good month in spite of rising virus caseloads due to a strong earnings season relative to expectations, especially in tech towards the end of the month. YTD Silver, Gold and the NASDAQ have been the three best performers while at the bottom of the leaderboard Brent, WTI and European Banks are all down at least 30%.

Below we present some of the key highlights from Deutsche Bank’s July 2020 performance review

While July proved to be another decent month for risk assets, it was the performance of two other assets in particular which caught the eye. The first was Silver, which had its strongest month since December 1979. The second was the weakness in the USD, which ended with the USD spot index dropping by the most in a single month since September 2010.

Indeed the impact of the latter was fully felt when looking at returns in USD terms, with 36 of the 38 assets in DB’s sample finishing with a positive total return. In local currency terms, that number dropped to a still-impressive 30 assets. As markets move into August, typically a more subdued month for volumes but perceived to be a weaker month for risk, the focus remains on the reopening of economies on the one hand and signs of rising cases in certain countries on the other.


Silver to surge above $35 after taking a breather – Credit Suisse

Silver has established its looked for base and has already moved to the first resistance at $26.09/22. Whilst strategists at Credit Suisse look for a pause here, they see scope for further gains ahead, ideally to $35.23/365. 

Key quotes

“Silver has seen an even more dramatic move higher than Gold over the past few weeks, confirming the flagged multi-year base above $19.65, and strength has already extended to our flagged resistance at $26.09/22 – the 38.2% retracement of the entire 2011/2020 bear market and key lows from 2011 and 2012.”


Silver Nears 7 Year High, Closing in on US$30

Silver edged above US$26 per ounce on Monday (July 27), adding more that 31 percent to its value since January.

Safe haven demand and record exchange trade fund (ETFs) inflows have been the primary catalysts for the metal’s sustained growth in Q2. Reinvigorated animosity between the US and China, and concern a second wave of COVID-19 will further weaken the global economy have been key drivers recently.

The white metal is now back in territory unseen since September 2013, with motivators in place to move it higher.