Silver Gains Ground After U.S. Inflation Reports Exceed Analyst Estimates

Silver ETF Continues To Move Higher While Gold Stays Above The $1830 Level

Silver is currently trying to settle above the resistance at $23.50 while U.S. dolalr is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to get above $21.70.

The U.S. Dollar Index has recently made an attempt to settle above the 96 level but lost momentum and pulled back towards the 50 EMA at 95.75. In case the U.S. Dollar Index moves back below the 50 EMA, it will head towards the support level at 95.40 which will be bullish for silver and gold price today.

Gold managed to stay above the $1830 level despite dollar’s rally while SPDR Gold Trust moved back to the $171 level. Higher-than-expected U.S. inflation data provided support to the American currency but also served as a positive catalyst for gold, which is a traditional inflation hedge. In case gold stays above the $1830 level, it will head towards the next resistance at the $1845 level which will be bullish for silver.

Gold/silver ratio has recently managed to get below the 50 EMA at 78.45 and is moving towards the 78 level. A move below this level will open the way to the test of the support at 77.50 which will be bullish for silver.

Technical Analysis

Silver is testing the resistance level at $23.50. In case this test is successful, silver will move towards the next resistance which is located at $23.70.

A move above the resistance at $23.70 will open the way to the test of the next resistance level at $24.00. If silver climbs above this level, it will head towards the resistance at $24.25.

On the support side, the previous resistance at $23.20 will serve as the first support level for silver. If silver declines below this level, it will head towards the next support at the 50 EMA at $23.10. A move below this level will push silver towards the support level which is located at $22.80.

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