Silver Daily Forecast – Silver Moves Higher as Investors Show Optimism

Silver has posted slight gains in the Friday session. Currently, silver is trading at $12.61, up $0.51 or 4.28% on the day.

Markets Rebound After Rate Cuts, Stimulus

Global markets have moved higher on Friday, as governments and central banks have intervened with massive stimulus packages in order to stabilize the volatile financial markets. On Wednesday, President Trump signed into law a massive stimulus package that had been quickly approved by Congress. The package, worth close to a trillion dollars includes direct payments, deferred payments and tax breaks. The move is aimed at shoring up the U.S. economy, which analysts fear could be headed towards a recession.

Major central banks have mobilized to combat the financial turmoil caused by COVID-19 outbreak. The Federal Reserve has slashed interest rates to near zero and also announced a huge bond-buying campaign. Across the pond, the ECB announced a 750 billion euro asset purchase package. The Pandemic Emergency Purchase Program (PEPP) will last until the end of 2020. On Thursday, the Bank of England trimmed rates from 0.25% to 0.10%, a record low. This move comes just one week after an emergency rate cut of 50 basis points. The bank will also buy an extra 200 billion pounds in government and corporate bonds. These massive bond purchases by the central banks are aimed at improving economic conditions, which have badly deteriorated due to the outbreak, especially with crippling travel restrictions through much of the world.

The cautious optimism in the financial markets has helped boost silver, although the metal is down 14.8 percent this week. For now, silver is keeping its head above the critical $12 level, which has been tested during the week.

 

Silver Technical Analysis

The crucial 12.00 level remains an immediate resistance line. Above, there is resistance at 13.00. If that level is broken, the market will next be looking at 15.00. On the downside, if silver drops into the mid-11 range, we could be headed much lower, as the next major support level is at the symbolic 10.00 level.

Silver 1-Day Chart

Crude Oil Daily Forecast – Is this the Time to Buy Crude?

Crude has posted gains in the Friday session. Currently, U.S. crude oil is trading at $27.59, up $2.24 or 8.51% on the day. Brent crude oil is trading at $31.97, up $2.57 or 8.67%.

Crude Tests $20 – To Buy or Not to Buy?

We are seeing a pause in the massive sell-off of crude, which hit $20 a barrel earlier in the week. Despite this upward price retracement, traders should bear in mind that the current trend remains downward and overall sentiment is pessimistic. This means that the floor could be still lower. At the same time, oil prices have crashed and fell this week to 18-year lows, which certainly represents a buying opportunity. Traders may wish to show some caution and not go “full in” to such volatile markets, but these prices can certainly be considered a bargain.

Oil Rebounds on Trump Remarks

Crude prices have moved higher on Friday after U.S President Trump said on Thursday that he was prepared to get involved in the Saudi Arabia-Russia price war “at the appropriate time”. Trump did not offer any specifics, but investors were heartened that Trump’s remarks (warning?) could help end the price war, which has contributed to plunging oil prices. Earlier this week, U.S. crude fell as low at $20.27, its lowest level since 2002.

The U.S. is unhappy with plummeting oil prices, which has severely hurt U.S. shale oil production, which makes up 1/3 of onshore oil production in the continental U.S. Still, analysts aren’t expecting Russia or Saudi Arabia to lose face anytime soon and be the first to blink. Saudi Arabia is incensed that Russia torpedoed its move to slash production and has responded with deep price cuts and an increase in production. However, Russian President Putin is unlikely to bend to the Saudis, as long as the Russian economy is not hit too hard by falling prices.

Technical Analysis

With crude showing some sustained upward movement, a number of resistance lines have fallen. Currently, there is resistance at 29.85. If crude breaks through this line, it has room to move as high as 32.80, which is the next major resistance line. On the downside, there is support at support 26.80, followed by 24.20.

U.S. Crude 1-Day Chart

Silver Daily Forecast – Silver Steady at $12 as Markets Claw Higher

Silver has posted small gains in the Thursday session. Currently, silver is trading at $12.17, up $0.18 or 1.55% on the day.

Silver Steady as US, ECB Announce Stimulus

Investors have taken a break from the frenzied selling, as the equity markets in Europe and the U.S. have steadied on Thursday. This respite has also been reflected in silver prices, as silver is in green territory on Thursday. Silver has not enjoyed a winning daily session since March 5, so another winning session would certainly be a psychological boost.

Late Wednesday, President Trump signed into law a massive stimulus package that had been quickly approved by Congress. The package, worth close to a trillion dollars includes direct payments, deferred payments and tax breaks. The move is aimed at shoring up the U.S. economy, which analysts fear could be headed towards a recession. Unemployment claims skyrocketed to 281 thousand last week, up from 211 thousand a week earlier. These numbers are expected to climb sharply in the coming weeks, with some experts projecting up to a million unemployed persons.

The ECB has also taken dramatic action, after an initially tepid response to the CORVID-19 outbreak triggered heavy criticism against ECB President Christine Legarde. On Wednesday, the ECB announced a 750 billion euro asset purchase program to combat the financial turmoil caused by COVID-19. The program, called the Pandemic Emergency Purchase Program (PEPP) will last until the end of 2020.

 

Silver Technical Analysis

The 12.00 level remains crucial, as silver continues to hug this line. Currently, this line is an immediate resistance line. Above, there is resistance at 13.00. If that level is broken, the market will next be looking at 15.00. On the downside, if silver drops below Wednesday’s low (11.77), we could be headed much lower, as the next major support level is at the 10.00 level, which has psychological significance.

Silver 1-Day Chart

Crude Oil Daily Forecast – Crude Takes Pause From Slide

Crude has reversed directions on Thursday and has recorded gains. Currently, U.S. crude oil is trading at $23.37, up $0.81 or 3.49% on the day. Brent crude oil is trading at $25.67, up $0.60 or 2.18%.

Oil Steadies on Selling Exhaustion

U.S. crude prices have melted this week, with losses of close to 30 percent. However, traders were greeted with some positive news on Thursday, as crude has moved slightly higher. Is this respite just a temporary blip, or will we see a recovery in prices? Investors could well be in a ‘wait-and-see’ mode, notes Edward Moya, senior market analyst at OANDA. “After a 24% crash, oil prices are firming up on some selling exhaustion and as U.S. and European leaders unleash … aid and stimulus”.

ECB Announces Stimulus Package

The massive slide in the financial markets has galvanized action on both sides of the pond. In the U.S., the Trump Administration has unveiled plans to boost the economy with a massive stimulus package, which is estimated at some $1 trillion. The package is expected to include direct payments, deferred payments and tax breaks. The plan will require Congressional approval, and Treasury Secretary Mnuchin warned that if the package is not approved, unemployment could skyrocket as high as 20 percent.

Over in Europe, the ECB has finally taken off the gloves after sitting on its hands during the past few weeks. This lack of action resulted in heavy criticism against ECB President Christine Legarde. On Wednesday, the ECB announced a 750 billion euro asset purchase program to combat the financial turmoil caused by COVID-19. The program, called the Pandemic Emergency Purchase Program (PEPP) will last until the end of 2020.

Technical Analysis

Cure continues to put pressure on support at 22.62. This is followed by support at 21.37, which is protecting the symbolic number of 20.00. On the upside, there is weak resistance at 24.20. This is followed by resistance at 26.80.

U.S. Crude 1-Day Chart

Crude Oil Daily Forecast – Crude Falls Below $23 on Recession Fears

Crude prices continue to post sharp losses. Currently, U.S. crude oil is trading at $22.63, down $4.24 or 16.77% on the day. Brent crude oil is trading at $25.67, down $3.11 or 10.80%.

Crude Crumbles, is $20 Next?

Crude remains in free-fall, as prices have declined 31.1% this week alone. In the month of March, crude has fallen a staggering 49.8%. It has become ‘March Madness’ for oil prices, with analysts saying there is even more room for prices to drop. Louise Dickson, an analyst at Rystad Energy, wrote in a note that “with each day, there seems to be yet another trapdoor lying beneath oil prices. What we are seeing here is essentially the atomic bomb equivalent in the oil markets.”

Trump Announces Stimulus Package

The Trump Administration has unveiled plans to boost the economy with a massive stimulus package, which is estimated at some $1 trillion. The package is expected to include direct payments, deferred payments and tax breaks. The plan will require Congressional approval, and Treasury Secretary Mnuchin warned that if the package is not approved, unemployment could skyrocket as high as 20 percent.

There are growing fears that the U.S. could be headed to a recession, as the economy has been hit hard by the COVID-19 outbreak. The slowdown in the world’s largest economy is weighing heavily on demand for crude, which has sustained steep declines due to the collapse of global travel and the economic paralysis in China.

The meltdown in oil prices is a combination of reduced demand and excess supply. This situation has been exacerbated by the price war between Saudi Arabia and Russia, following the latter’s refusal to go along with a deep cut to output that was proposed by OPEC. The slide in oil prices could well continue – in a client note on Tuesday, Goldman Sachs said that Brent oil could drop as low as $20 in the second quarter.

Technical Analysis

Cure continues to fall and break below support levels. There is pressure on support at 22.62. This is followed by support at 21.37, which is protecting the symbolic number of 20.00. On the upside, there is resistance at 24.20, followed by resistance at 26.80.

U.S. Crude 1-Day Chart

Silver Daily Forecast – Silver Falls to 11-Year Low

Silver has lost ground on Wednesday. Currently, silver is trading at $12.08, down $0.56 or 4.01% on the day.

Market Turmoil Drags Silver Lower

The trading week started with ‘Black Monday’, as the equity markets suffered there worst one-day loss since the 1987 crash. Silver was not spared from the financial carnage, as the metal plunged 12.2 percent. The slide has continued, as silver has fallen 17.9% in the month of March.

Fed, Trump to the Rescue?

The Trump Administration has unveiled plans to boost the economy with a massive stimulus package, which is estimated at some $1 trillion. The package is expected to include direct payments, deferred payments and tax breaks. The plan will require Congressional approval, and Treasury Secretary Mnuchin warned that if the package is not approved, unemployment could skyrocket as high as 20 percent.

U.S. stock markets reacted positively to the news on Tuesday, with silver posting only slight losses after its huge decline on Monday. Silver has given up more ground on Wednesday and has touched a daily low of 11.69, its lowest level since January 2009. The outlook for silver remains grim, as economic growth is at a standstill, which means little industrial demand for silver.

The Federal Reserve has slashed rates to a range between zero and 0.25%, in a move coordinated with other major central banks. On Tuesday, the Fed announced it was establishing a Commercial Paper Funding Facility, in order to keep credit flowing to the economy. Investors are hopeful that this move will ease pressure in the commercial paper market and lower the volatility which has engulfed the financial markets.

 

Silver Technical Analysis

The 12.00 level remains under pressure, as this line was tested in the European session. The next support level is at 10.50, which is protecting the 10.00 level, which has psychological significance. On the upside, there is resistance at 14.00, followed by resistance at 14.50.

Silver 1-Day Chart

Crude Oil Daily Forecast – Crude Limping After ‘Black Monday’ Carnage

Crude prices have posted sharp losses at the start of the week. Currently, U.S. crude oil is trading at $28.71, down $0.17 or 0.55% on the day. Brent crude oil is trading at $29.58, down $0.17 or 0.71%.

Crude Slides as Market Turmoil Continues

The week started on a disastrous note, as the ‘Black Market’ meltdown was the stock market’s worst one-day performance since 1987. The Dow Jones Index plunged close to 3000 points on Monday and crude prices declined by 13.1% in the financial carnage.

Crude has slumped by an astounding 36.1% in the month of March, as prices have been choked by a ‘triple whammy’. First, jittery investors have dumped all classes of assets and snapped up the U.S. dollar. Second, economies around the world buckling under the COV-19 crisis, which has dampened the demand for crude. China, the world’s second-largest consumer of oil after the U.S., has seen demand for crude shrink by more 20 percent. Third, the price war between Russia and Saudi Arabia has flooded the market with even more oil. The 3-year old agreement between OPEC and Russia fell apart earlier in March, when Russia refused to go along with deep cuts proposed by OPEC in an attempt to stabilize prices. Saudi Arabia responded by raising output and lowering prices, which has resulted in a huge oversupply of crude on the global markets. With no end in sight to any of these three factors, traders can expect oil prices to remain under heavy downward pressure.

Technical Analysis

The line of 29.85 is the next resistance line. However, it remains vulnerable to profit-taking, following crude’s sharp decline on Monday. This is followed by resistance at 32.80. On the downside, there is weak support at 28.20, protecting the round number of 28.00. This is followed by support at 26.80.

U.S. Crude 1-Day Chart

Silver Daily Forecast – Silver Pressing on $12 as Market Turmoil Continues

Silver has lost ground on Tuesday. Currently, silver is trading at $12.43, down $0.47 or 3.75% on the day.

‘Black Monday’ Sends Silver Reeling

The financial markets were in free-fall on Monday, as the equity markets suffered their worst one-day loss since the 1987 crash. The economic picture remains grim, despite the emergency move by the Federal Reserve on Sunday, which cut interest rates to a range between zero and 0.25%. Investors remain rattled and the equity markets are bearing the brunt of the panic. Randy Frederick, vice president of trading and derivatives for Charles Schwab, was somber in an assessment of the situation, saying that “we have not experienced an issue like this in the last several decades, where it affects all industries and businesses everywhere in the world.” Frederick added that “a recession is a fairly high probability. The question is when does it start”.

Jittery investors have been gripped by a “dash for cash” attitude, which has left all asset classes vulnerable. Commenting on the market meltdown, Phil Streible, chief market strategist of Blue Line Futures, has noted that “it seems like the only place that anyone found any safe haven in was the bond market, but with yields dipping back down below 0.64%, I think that there’s not much room there on the upside”.

Black Monday did not spare silver, as the metal fell by 12.2 percent. In the month of March, the metal has declined by a staggering 25.0%, as silver’s (partial) safe-haven status has not been enough to save the metal from the ravages of the market melt-down.

 

Silver Technical Analysis

The 12.00 level remains under pressure, although it has not been tested in the Tuesday session. The next support level is at 10.50, which is protecting the 10.00 level, which has psychological significance. On the upside, there is resistance at 14.00, followed by resistance at 14.50.

 

Silver 1-Day Chart

Crude Oil Daily Forecast – Crude Slides Below $29 as Demand Plunges

Crude prices have posted sharp losses at the start of the week. Currently, U.S. crude oil is trading at $29.29, down $3.58 or 10.90% on the day. Brent crude oil is trading at $30.02, down $4.68 or 13.48%.

Crude Slides as Market Turmoil Continues

It was another dismal week for crude, which plunged 20.8 percent. Crude has greeted traders with more double-digit losses on Monday, with prices falling below the $30 level, which has psychological significance.

Oil prices are in free-fall, after being hit by a ‘triple whammy.’ First, panicky investors are gripped by a ‘dash for cash’ attitude which has boosted the U.S. dollar, while all asset classes have headed lower, including crude.

Second, with economies around the world buckling under the COV-19 crisis, the demand for crude continues to drop.  China, the world’s second-largest consumer of oil after the U.S., has seen demand for crude shrink by more 20 percent. According to Pearce Hammond, an analyst at Simmons Energy, “the demand drop unfolding is like nothing anyone has ever witnessed”.

Third, the price war between Russia and Saudi Arabia continues. The 3-year old agreement between OPEC and Russia fell apart earlier in March, when Russia refused to deep cuts which OPEC wanted to implement in order to stabilize prices. Saudi Arabia responded by raising output and lowering prices, which has resulted in a huge oversupply of crude on the global markets. With no end in sight to any of these three factors, traders can expect oil prices to remain under heavy downward pressure.

Technical Analysis

The line of 29.85 remains fluid. Currently, it is an immediate resistance line. This is followed by resistance at 32.80. On the downside, there is support at 28.20, protecting the round number of 28.00. This is followed by support at 26.80.

U.S. Crude 1-Day Chart

Silver Daily Forecast – Silver Crashes Below $12 as Market Turmoil Continues

Silver has plunged in the Monday session. Currently, silver is trading at $12.29, down $2.40 or 16.40% on the day.

Silver Crashes Below $12.00

Silver fell 15.1% percent last week and the slide has continued on Monday, as the metal is down another 15 percent. The ‘dash for cash’ attitude which has gripped the markets has left all asset classes vulnerable. Gold, which is a traditional safe-haven asset, has not been spared, as the metal fell 8.6% last week and is down another 4.4% on Monday.

The free-fall in the markets has continued, despite drastic action by the Federal Reserve. The Fed cut rates by 50 basis points on Sunday, lowering the baseline rate to a range between zero and 0.25%. The Fed has now slashed rates by a full percent in less than two weeks. The dramatic move on Sunday was made in coordination with other central banks, which also lowered their interest rates to 0.25%. As well, the Federal Reserve announced that it is purchasing $700 billion in bonds and securities. The aim of these moves is to boost economic growth and also calm the frantic financial markets.

The coronavirus has been declared a national emergency in the U.S., as the country has taken drastic measures to curb the spread of the virus. Fears are growing that the outbreak will lead to a global recession, and the mood among investors remains grim.

 

Silver Technical Analysis

Silver easily broke below support levels at 14.50 and 14.00 and has tested the 12.00 level on Monday. The next support level is at 10.50, which is protecting the 10.00 level, which has psychological significance.

Crude Oil Daily Forecast – Crude Rebounds as Markets Stabilize

Crude prices have moved higher on Friday. Currently, U.S. crude oil is trading at $33.74, down $2.79 or 8.97% on the day. Brent crude oil is trading at $35.65, down $2.96 or 9.02%.

Crude Rebounds as Congress, Fed Mobilize

It has been a dreadful week for U.S. crude, which has plunged 19.4 percent. The markets were hit by massive stock sell-offs on Thursday, but the markets have leveled off on Friday. Investors are hopeful that the U.S. Congress and Federal Reserve will provide relief which will ease the economic crisis caused by the coronavirus outbreak. Lawmakers are working on an economic package to address the coronavirus crisis, which could be unveiled as early as Friday. Stephen Innes, global chief markets strategist at AxiCorp, noted that a bipartisan response to the current crisis is having a calming effect on the market, as it “suggests that there will be a little obstacle to a more massive stimulus effort.”

Aside from coordination between Congress and the White House, the Federal Reserve is also taking concrete action. Analysts expect the Fed to cut rates again at next week’s policy meeting. Last week, the Fed stunned the markets and slashed rates by 50 basis points, in what was the first time that the Fed cut rates in between policy meetings since 2008. As well, the New York Federal Reserve made a dramatic move on Thursday, as it said it would inject more than $1 trillion into the markets in the next few days.

Technical Analysis

The line of 32.80 remains fluid. Currently, it is an immediate support line. This is followed by support at 29.85. If crude crosses below this line, it has room to fall as low as the 29.00 level. On the upside, we find resistance at 35.50, followed by 37.50.

 

Silver Daily Forecast -Will Silver Break Below $15?

Silver is unchanged on Friday, after sustaining sharp losses a day earlier. Currently, silver is trading at $15.80, down $0.02 or 0.09% on the day.

Silver Pulls Back on Hopes of Stimulus

Silver fell over 5 percent on Thursday and has plunged 9 percent this week. The decline on Thursday was in response to U.S. President Trump’s announcement of a ban on foreign travelers from Europe, with the exception of the UK. The ban is in effect for 30 days, and is in response to the coronavirus outbreak, which has now killed 33 people in the U.S. The move pushed silver to an 8-month low and also sent global stock markets sharply lower.

The market sell-off has eased on Friday, on hopes that help is on the way. U.S. lawmakers are working on an economic package to address the coronavirus crisis, which could be unveiled as early as Friday. Stephen Innes, global chief markets strategist at AxiCorp, noted that a bipartisan response is having a calming effect on the market, as it “suggests that there will be little obstacle to a more massive stimulus effort.”

The Federal Reserve has also mobilized. Analysts expect the Fed to cut rates again at next week’s policy meeting. Last week, the Fed stunned the markets and slashed rates by 50 basis points. As well, the New York Federal Reserve made a dramatic move on Thursday, as it said it would inject more than $1 trillion into the markets in the next few days.

 

Silver Technical Analysis

For a second successive day, silver is testing support at the 15.60 line. Below, we find support at the round number of 15.00, followed by a support line at 14.20. On the upside, the line of 16.30 has some breathing room in resistance. Above, we have resistance at 16.90, followed by the 200-day EMA line situated at 17.08.

Silver 1-Day Chart

Crude Oil Daily Forecast – Oil Falls Below $30 as Trump Travel Ban Unnerves Investors

Crude prices continue to decline and have lost ground in the Thursday session. Currently, U.S. crude oil is trading at $31.15, down $1.94 or 5.83% on the day. Brent crude oil is trading at $32.98, down $2.82 or 7.88%. Earlier in the day, U.S. crude touched a daily low of $29. 98.

Crude Slips on WHO, U.S. Travel Ban

Crude prices have been hammered this week, falling some 23.3 percent. On Wednesday, the World Health Organization labeled the coronavirus a pandemic, which means a disease that is spreading in multiple countries around the world at the same time. Meanwhile, Italy has toughened its measures to combat the virus, announcing the closure of all shops except food shops and pharmacies. The country has already imposed severe travel restrictions on the entire population, in a desperate effort to contain the virus.

Also on Wednesday, the United Arab Emirates, OPEC’s third-largest oil producer, announced that it would follow Saudi Arabia’s lead and raise output, from 3 million to 4 million barrels per day, starting in April. On the weekend, Saudi Arabia launched an all-out price war, raising production and cutting prices after Russia refused to go along with a deep production cut.

There was more bad news for crude on Thursday, as U.S. President Trump announced a ban on foreign travelers from Europe, with the exception of the UK. The ban is in effect for 30 days and is in response to the coronavirus outbreak, which has now killed 33 people in the United States. The move has sent global stock markets sharply lower on Thursday and oil prices have followed suit.

Technical Analysis

U.S. crude has broken below support at 32.80 on Thursday. This is followed by support at 29.85. If crude crosses below this line, it has room to fall as low as the 29.00 level. On the upside, we find resistance at 35.50.

 

Silver Daily Forecast – Silver Slides to 8-Month Low as U.S Imposes Travel Restrictions

Silver has recorded considerable losses in the Thursday session. Currently, silver is trading at $15.83, down $0.93 or 5.56% on the day.

Silver Falls Below $16 After U.S. Travel Ban

Silver managed to remain steady for two days, but has resumed its losing ways on Thursday. The metal has fallen over 5 percent, after U.S. President Trump announced a ban on foreign travelers from Europe, with the exception of the UK. The ban is in effect for 30 days, and is in response to the coronavirus outbreak, which has now killed 33 people in the U.S. The move has sent global stock markets sharply lower on Thursday, and silver prices have also lost ground. Earlier in the day, silver fell to a daily low of $15.75, its lowest level since July 2019. Silver had already lost ground before Trump’s travel ban, after the World Health organization called the coronavirus a pandemic, which means a disease that is spreading in multiple countries around the world at the same time. Meanwhile, Italy has toughened its measures to combat the virus, announcing the closure of all shops except food shops and pharmacies. The country has already imposed severe travel restrictions on the entire population, in a desperate effort to contain the virus.

 

Silver Technical Analysis

Silver has declined on Thursday and is testing support at the 15.60 line. Below, we find support at the round number of 15.00, followed by a support line at 14.20. On the upside, the line of 16.30 has some breathing room in resistance. Above, we have resistance at 16.90, followed by the 2000-day EMA line at situated at 17.08.

Silver 1-Day Chart

Crude Oil Daily Forecast – Oil Prices Remain Under Pressure

Crude prices have lost ground in the Wednesday session. Currently, U.S. crude oil is trading at $33.36, down $1.61 or 4.03% on the day. Brent crude oil is trading at $36.16, down $1.64 or 4.29%.

Crude Volatility Continues

It has been a roller-coaster ride for crude. On Friday, prices fell by almost 10 percent, after OPEC failed to secure an agreement for a deep cut in output, in order to stabilize falling oil prices. This was followed by a staggering 27% decline on Monday, as the markets reacted to Saudi Arabia’s decision to launch an all-out price war against Russia. The move was in retaliation for Russia’s refusal to join forces with Saudi Arabia and cut production. This huge drop was apparently excessive, as crude bounced back on Tuesday, with gains of 15%. On Wednesday, the United Arab Emirates, OPEC’s third-largest oil producer, announced that it would follow Saudi Arabia’s lead and raise output, from 3 million to 4 million barrels per day, starting in April.

The immediate outlook for crude is not promising. The dramatic events of the last few days saw crude prices nosedive close to a low of $27.29 a barrel, its lowest level since February 2016. The coronavirus has led to authorities in Italy restricting movement throughout the entire country and the United States has now reported over 1,000 cases of the virus. The U.S. is the world’s largest consumer of oil, and it’s clear that as the virus takes a toll on the U.S. economy, demand for crude will fall.

Technical Analysis

The line of 32.80 is providing support but remains vulnerable. This is followed by support at 29.85. On the upside, we find resistance at 35.50. If crude breaks above this line, it has some room to gain ground, with the next resistance line at 38.80.

Silver Daily Forecast – Silver Takes Breather at $17.00

Silver has posted slight gains in the Wednesday session, recovering the losses seen on Tuesday. Currently, silver is trading at $16.98, up $0.08 or 0.51% on the day.

Silver Pauses at 17.00 – What’s Next?

After showing significant volatility, silver prices have steadied around the $17.00 level. With the coronavirus spreading and causing economic turmoil across the globe, investor risk appetite has been dampened. This has boosted safe-haven assets such as gold and the Japanese yen, but less so silver. The reason? Silver acts as a hybrid – 60% of demand for the metal is for industrial purposes, while only 40% is demand as a safe -haven. If economic conditions continue to deteriorate, industrial demand will also sag, which will weigh on silver prices.

Gold prices punched above the lofty $1700 on Monday, the first time that has happened since 2012. As well, the gold:silver ratio hit an all-time record of 100:1. Silver has been unable to match gold’s impressive gains and has joined the decline seen in stock markets, bond yields and other commodities.

Trump Downplays Corona but Pledges Relief

With the coronavirus threatening to unleash economic turmoil in the United States, which is the world’s largest economy,  President Trump has announced some measures aimed at providing financial relief.  On Monday, Trump said he will propose a temporary payroll tax cut as well as paid leave for hourly workers who cannot work due to the outbreak. If the spread of the virus intensifies, there will be pressure on the government to implement fiscal stimulus measures, such as relief for small businesses and industries hard-hit by the virus.

 

Silver Technical Analysis

The 200-EMA is situated at 17.10, just above the pair. The line of 17.50 is the next resistance line, followed closely by the 50-EMA at 17.63. Above, the round number of 18.00 is a key resistance level with psychological significance. On the downside, there is immediate support at 16.90, with the next support line at 16.30.

Silver 1-Day Chart

Crude Oil Daily Forecast – Crude Rebounds after Free-fall Plunge

Crude prices have rebounded on Tuesday. Currently, U.S. crude oil is trading at $32.90, up $2.81 or 9.4% on the day. Brent crude oil is trading at $36.50, up $3.98 or 9.5%.

Crude Steadies, But Outlook Remains Bleak

Oil prices have been falling in recent weeks, as the coronavirus has caused economic turmoil in China and has since spread to Europe and the United States. Crude has taken investors on a roller-coaster ride, as a key meeting of oil ministers from OPEC and non-OPEC countries ended without an agreement on Friday. Saudi Arabia had led the push for a cut in output in order to stabilize prices. However, Russia refused to go along with the move, with analysts noting that Russia’s budget had taken into account low oil prices.

Saudi Arabia has responded to Russia’s cold shoulder by launching a price war against Moscow, as it boosted production while cutting prices on the weekend. Crude fell 10% on Friday and plunged a staggering 27% in the Monday session, as prices fell below $28 a barrel, a level not seen since February 2016.

Is the rebound in oil prices on Tuesday just a temporary respite? This could well be the case, as demand for risk assets remains high. Monday’s massive selloff, in which crude went into free-fall, may have been excessive, resulting in gains on Tuesday.

Meanwhile, the situation in Europe is rapidly deteriorating. After closing down the northern provinces, Italian authorities have decided to lock down the entire country in a move to combat the spread of the coronavirus. Italy has reported over 400 fatalities from the virus, which has quickly spread to other Western European countries.

Technical Analysis

Crude has gained ground on Tuesday. The line of 32.80 is providing support, but remains vulnerable. This is followed by support at 29.85. On the upside, we find resistance at 35.50, followed by resistance at 38.00.

Silver Daily Forecast – Silver Grinding at $17.00

After starting the week with losses, silver is steady in the Tuesday session. Currently, silver is trading at $17.05, unchanged on the day.

Silver Hovering at $17.00

Silver has taken a pause after some significant volatility. The metal gained 4 percent last week, but lost almost half of that amount on Monday. With the coronavirus raising fears about a global recession, silver has also taken it on the chin, as 60% of the demand for the metal is as an industrial component. As a precious metal, silver is also, to an extent, a safe haven, but gold is clearly the destination of choice for jittery investors. Gold prices remain around the lofty $1700 level, as it has reasserted its safe-haven status in times of crisis. The gold-to-silver ratio hit an all-time record of 100:1 on Monday, as silver has joined the decline seen in stock markets, bond yields and other commodities.

Trump Promises Financial Relief for Corona

With the coronavirus threatening to unleash economic turmoil in the United States, President Trump has announced some measures aimed at providing financial relief.  On Monday, Trump said he will propose a temporary payroll tax cut as well as paid leave for hourly workers who cannot work due to the outbreak. If the spread of the virus intensifies, there will be pressure on the government to implement fiscal stimulus measures, such as relief for small businesses and industries hard-hit by the virus.

 

Silver Technical Analysis

The 200-EMA is situated at 17.10, just above the pair. The line of 17.50 is the next resistance line, followed closely by the 50-EMA at 17.63. Above, the round number of 18.00 is a key resistance level with psychological significance. On the downside, there is immediate support at 16.90, with the next support line at 16.30.

Silver 1-Day Chart

Silver Daily Forecast – Silver Falls Below $17 Level

Silver has started the week with losses. Currently, silver is trading at $16.96, down $0.65 or 2.16% the day.

Silver Slips on Demand Concerns

Silver continues to show sharp swings. The metal gained 4 percent last week, but has already given up about half of that amount on Monday. With the coronavirus raising fears about a global recession, silver has also taken it on the chin, as 60% of the demand for the metal is as an industrial component. As a precious metal, silver is also, to an extent, a safe haven, but gold is clearly the destination of choice for jittery investors. Gold prices remain around the lofty $1700 level, as it has reasserted its safe-haven status in times of crisis. Analysts have noted that the gold-to-silver ratio has hit an all-time record of 100:1 on Monday, as silver has joined the decline seen in stock markets, bond yields and other commodities.

The Federal Reserve rate cut last week put pressure on other central banks to lower rates, and Australian and Canadian central banks immediately responded with cuts of their own. Lower interest rates make the U.S. dollar less attractive, which is bullish for precious metals. Silver may benefit from a looser monetary policy, but due to demand for silver as an industrial component, the flow towards precious metals in this time of crisis has been benefiting gold more than silver.

 

Silver Technical Analysis

With silver falling below the 17.00 level, the next resistance line is the 200-EMA at 17.10. The line of 17.50 has some breathing room in resistance, followed closely by the 50-EMA at 17.64. The round number of 18.00 is the next resistance line. On the downside, we find support at 16.90, with the next support line at 16.30.

Silver 1-Day Chart

Crude Oil Daily Forecast – Crude Dives as Low as $27 as OPEC Fails to Cut Output

Crude is in free-fall in the Monday session. Currently, U.S. crude oil is trading at $32.14, down $9.38 or 22.55% on the day. Brent crude oil is trading at $35.42, down $10.07 or 22.17%.

Crude Slides as OPEC+ Meeting Collapses

The meeting between oil ministers of OPEC and non-OPEC members ended in disarray, as OPEC failed to get Russia on board for a sharp cut in production. Saudi Arabia had led the charge for a cut in order to stabilize prices. However, Russia was not looking to raise prices, with analysts noting that Russia’s budget had taken into account low oil prices.

Oil prices have been falling in recent weeks, as the coronavirus has caused economic turmoil in China and has since spread to Europe and the United States. Saudi Arabia has responded to Russia’s cold shoulder by launching a price war against Moscow, as it slashed oil prices by $6 to $8 dollars on the weekend. Crude fell 10% on Friday, and has plunged a staggering 22% in the Monday session. Earlier in the day, U.S crude fell to $27.34, its lowest level since February 2016.

The coronavirus outbreak has spurred central banks to co-ordinate action, with growing fears in the market that a global recession could be looming. The Federal Reserve slashed rates by 0.50% last week, and the Canadian and Australian central banks followed suit with rate cuts. After the Fed rate cut, Fed Chair Powell said that he expected the move to boost the U.S. economy, which will likely be impacted by the virus.

Technical Analysis

Crude continues to break below support levels. Currently, there is support at 32.80, followed by support at 29.85. On the upside, we find resistance at 35.50, followed by resistance at 38.00.