Silver Drops 3% As Geopolitical Tensions Ease

Silver ETF Is Under Serious Pressure

Silver is currently trying to settle below the support at the 50 EMA at $23.15 while U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below the 50 EMA at $21.40.

The U.S. Dollar Index continues its attempts to get below the support level at 96. In case the U.S. Dollar Index manages to settle below this level, it will move towards the 50 EMA at 95.80 which will be bullish for silver and gold price today.

Gold faced resistance at $1875 and pulled back towards the support level at $1845 as traders focused on the first signs of de-escalation between Russia and Ukraine. Meanwhile, SPDR Gold Trust declined below the $173 level. In case gold manages to settle back below the support at $1845, it will gain additional downside momentum and head towards the next support level at $1830 which will be bearish for silver.

Gold/silver ratio managed to get back to the 80 level. If gold/silver ratio manages to settle above 80, it will head towards the resistance at the 81 level which will be bearish for silver.

Technical Analysis

Silver is currently testing the support level at the 50 EMA at $23.15. In case this test is successful, silver will move towards the $23.00 level.

A move below $23.00 will open the way to the test of the support level at $22.80. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge. If silver settles below $22.80, it will move towards the next support at $22.60.

On the upside, silver needs to stay above the 50 EMA to have a chance to gain upside momentum in the near term. The next resistance level for silver is located at $23.50.

If silver manages to settle back above $23.50, it will move towards the resistance at $23.70. A successful test of this level will push silver towards the resistance level at $24.00.

For a look at all of today’s economic events, check out our economic calendar.