Silver Retreats As Sell-Off Continues

Key Insights

• Silver is losing ground as gold tests support at $1865.
• Strong dollar and rising Treasury yields are the key bearish catalysts for silver markets. 
• A move below the support at $22.30 will push silver towards the support level at $22.10.

Silver ETF Is Under Strong Pressure At The Start Of The Week

Silver  is currently trying to settle below the support level at $22.30, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is testing the $20.50 level.

The U.S. Dollar Index is trying to settle above the resistance level at 103.60. In case the U.S. Dollar Index moves above this level, it will gain additional upside momentum and head towards the next resistance at 103.80, which will be bearish for silver and gold price today.

Gold  settled below the support at $1880 and is testing the next support level at $1865, while SPDR Gold Shares ETF is trying to settle below $173.50. If gold manages to settle below the support at $1865, it will head towards the next support level at $1850, which will be bearish for silver.

Gold/silver ratio continues its attempts to settle above the 83 level. If gold/silver ratio settles above this level, it will head towards the resistance at the 84 level, which will be bearish for silver.

Technical Analysis

Silver is testing the support level at $22.30. In case this test is successful, silver will head towards the next support, which is located at $22.10.

A move below the support at $22.10 will open the way to the test of the next support at $21.90. If silver declines below this level, it will move towards the support at $21.70.

On the upside, a move above $22.30 will push silver back towards the resistance level at $22.50. If silver manages to settle above this level, it will head towards the next resistance level at $22.70. A successful test of the resistance at $22.70 will open the way to the test of the resistance at $22.90.

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