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Silver Daily Forecast – Silver Gains Ground, Closing in on $19.00

Silver has posted slight gains in the Monday session. Currently, silver is trading at $18.76, up $0.28 or 1.56% the day. 

Corona Jitters Boost Silver, Gold

Silver enjoyed an excellent week, gaining 4.2 percent. This marked silver’s strongest week since the final week in August, when silver jumped 5.3 percent.

The coronavirus outbreak continues to spread, raising fears that the virus will reach even more countries. Earlier on Monday, Italy reported 200 confirmed cases, the largest number of cases outside of Asia. Italy’s health officials have imposed severe restrictions, which include limiting transport and the quarantine of individuals in affected areas. With the virus reaching Italy, there is concern that the outbreak could quickly spread throughout western Europe, as the Schengen Area, which covers 26 countries, allows for borderless travel. The European Union has said that it will not impose travel bans, but that could change if other European countries report coronavirus cases.

World Health Organization Director-General Tedros Adhanom Ghebreyesus weighed in on the crisis on Saturday, noting that the increase in cases in Italy, South Korea and Iran “is also a matter of concern and how the virus is now spreading to other parts of the world.”

Investors have reacted by snapping up precious metals, which act as safe-haven assets. Earlier on Monday, silver touched a daily high of 18.90, its highest level since September 2. Gold prices touched a daily high of 1689.38, its highest level since 2013. With no signs of the virus will be contained anytime soon, we could see the silver and gold rallies continue this week.

 

Silver Technical Analysis

As silver continues to rally, the line of 19.00 finds itself under strong pressure. This line could be tested as early as Tuesday. Above, the lofty level of 20.00 has held in resistance since September 2016.

On the downside, 18.60 is an immediate support line. Below, there is support at the symbolic 18.00 level. Next, the 50-day EMA is currently situated at 17.81, followed by support at 17.50.

This article was originally posted on FX Empire

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