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