Silver Declines As Gold/Silver Ratio Tests New Highs

Key Insights

• Gold/silver ratio settled above the 82 level, which was bearish for silver. 
• Weaker dollar failed to provide enough support to silver. 
• A successful test of the support at $23.10 will open the way to the test of the next support level at $22.90.

Silver ETF Is Losing Ground Ahead Of The Weekend

Silver continues its attempts to settle below the support at $23.10, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below $21.30.

The U.S. Dollar Index has recently made an attempt to settle below the 103 level but lost momentum and rebounded towards the resistance at 103.25. In case the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at 103.60, which will be bearish for silver and gold price today.

Gold  tested the resistance at $1915 but failed to develop sufficient upside momentum and pulled back, while SPDR Gold Shares ETF moved towards the $178 level. In case gold stays below $1915, it may gain downside momentum and move towards the support level at $1900, which will be bearish for silver.

Gold/silver ratio settled above the 82 level and is trying to settle above 82.50. In case this attempt is successful, gold/silver ratio will head towards the 83 level, which will be bearish for silver.

Technical Analysis

Silver continues to test the support level at $23.10. If silver manages to settle below this level, it will head towards the next support at $22.90.

A successful test of the support at $22.90 will open the way to the test of the support at $22.70. In case silver moves below this level, it will head towards the next support level, which is located at $22.50.

On the upside, the nearest resistance level for silver is located at $23.25. In case silver settles above this level, it will head towards the next resistance level at $23.50. A move above the resistance at $23.50 will push silver towards the next resistance at $23.70.

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