Silver Is Losing Some Ground As Dollar Rally Continues

Key Insights

• Silver is moving lower after an unsuccessful test of the resistance at $24.70, while gold is trying to settle above the resistance at the $1935 level. 
• Strong dollar and higher Treasury yields put some pressure on silver. 
• A move below the support at $24.50 will push silver towards the recent lows near $24.25.

Silver ETF Is Under Some Pressure Ahead Of The Weekend

Silver is currently trying to settle below the support at $24.50, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trading near the $22.60 level.

The U.S. Dollar Index has recently managed to get above the 100 level and is moving towards the resistance at 100.30. A move above 100.30 will push the U.S. Dollar Index towards the next resistance at 100.50, which will be bearish for silver and gold price today.

Gold continues to test the resistance at $1935, while SPDR Gold Shares ETF  is moving towards the $181 level. If gold settles above $1935, it may gain strong upside momentum, which will be bullish for silver.

Gold/silver ratio has recently managed to get above the 79 level and is moving towards the recent highs at 79.60. In case gold/silver ratio gets to the test of this level, silver will find itself under more pressure.

Technical Analysis

Silver is testing the support level at the 50 EMA at $24.50. In case this test is successful, silver will move towards the next support level, which is located near the recent lows at $24.25.

A successful test of the support at $24.25 will open the way to the test of the next support at $23.90. In case silver declines below this level, it will head towards the support at $23.70.

On the upside, the nearest resistance level for silver is located at $24.70. If silver climbs above this level, it will head towards the resistance at the 20 EMA at $24.80. A move above $24.80 will push silver towards the next resistance level, which is located at $25.10.

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