Silver Is Under Strong Pressure As Dollar Rallies To New Highs

Silver ETF Retreats After Hawkish Commentary From Jerome Powell

Silver is currently trying to settle below the support at $22.80 while U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust made an attempt to get below the $21 level.

The U.S. Dollar Index gained strong upside momentum after hawkish comments from Fed Chair Jerome Powell. It has already managed to get to above 2021 highs and is currently trying to settle above 97.25. In case this attempt is successful, the U.S. Dollar Index will move towards the resistance at 97.45 which will be bearish for silver and gold price today.

Gold settled below the support level at $1815 and testing the next support at $1800 while SPDR Gold Trust is trading in the $168 – $169 range. In case gold manages to settle below $1800, it will gain additional downside momentum and move towards the support at $1785 which will be bearish for silver.

Gold/silver ratio rallied after it managed to settle above the 50 EMA at the 78 level. Currently, gold/silver ratio is trying to get above the 79 level. In case this attempt is successful, gold/silver ratio will head towards the resistance at 79.50 which will be bearish for silver.

Technical Analysis

Silver is testing the support level at $22.80. In case this test is successful, silver will move towards the next support level which is located at $22.60.

A move below the support at $22.60 will push silver towards the support at $22.30. If silver declines below this level, it will head towards the next support level which is located at $22.10.

On the upside, the nearest resistance level for silver is located at $23.10. In case silver climbs back above this level, it will move towards the resistance at the 50 EMA at $23.25.

A successful test of the resistance at the 50 EMA will lead to the test of the 20 EMA at $23.35. If silver manages to settle above this level, it will head towards the next resistance level at $23.50.

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