Silver Video 28.07.20.
Silver Swings Between Support At $22.30 And Resistance At $26.20
Silver had a wild trading session, rising to $26.20 and then falling to $22.30 before stabilizing near the $24.00 level.
Gold also had an active trading session but did not have such wild swings, although it managed to set a new record at $1981 on a spot basis.
The major activity in both silver and gold comes ahead of the U.S. Federal Reserve meeting. While the interest rate is almost guaranteed to stay unchanged, the market will evaluate Fed’s commentary to find clues about future policy.
Gold/silver ratio also had wild swings, falling below 76 and then rising above 85 before stabilizing near the 81 level.
Such crazy action often highlights extreme points so silver will likely need additional upside catalysts to continue the current upside trend.
Meanwhile, the U.S. dollar is showing signs of a rebound. The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has found support near 93.5 and made an attempt to settle above the 94 level.
Stronger U.S. dollar is bearish for silver and other precious metals as it makes them more expensive for buyers who have other currencies. In case the U.S. dollar fails to rebound and drops to new lows, precious metals will get an additional boost.
Silver had a very busy day, testing resistance at $26.20 and then diving to test support at $22.30, right near the previous low at $22.25.
It is likely that just one trading day highlighted both the low end and the high end of the upcoming trading range with support at $22.30 and resistance at $26.20.
Inside this range, the nearest support for silver is located at $23.25. In case silver settles below this level, it will head towards the test of the major support level at $22.30.
On the upside, the nearest resistance has presented itself near the $24.00 level. A move above this level will open the way to the test of the resistance at $26.20, although silver may face additional resistance at lower levels.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Litecoin, Stellar’s Lumen, and Tron’s TRX – Daily Analysis – August 4th, 2020
- Dax and USD/JPY Meet Crucial Resistance
- Take-Two Interactive Sets All-Time High After Earnings Top Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.