Silver continues its attempts to settle above the resistance level at $23.80.
Silver is currently trying to settle above the resistance at $23.80 while the U.S. dollar is gaining some ground against a broad basket of currencies.
The U.S. Dollar Index is testing the nearest resistance level which is located at the 20 EMA at 92.55. If this test is successful, the U.S. Dollar Index will move towards the next resistance at 92.80 which will be bearish for silver and gold price today.
Meanwhile, gold is testing the resistance at the 20 EMA at $1780. A move above this level will open the way to the test of the next resistance at the 50 EMA near the $1800 level which will be bullish for silver and other precious metals.
Gold/silver ratio continues its attempts to settle above the 75 level. In case gold/silver ratio manages to settle above this level, it will move towards the recent highs at 75.65 which will be bearish for silver.
Traders should continue to monitor the developments in U.S. government bond markets as Treasury yields have recently moved to new lows. Traders buy U.S. Treasuries amid concerns about the spread of the Delta variant of coronavirus and its impact on the global economy, and precious metals may also get some support from safe-haven buying.
Silver made an attempt to settle below the support at $23.50 but failed to develop sufficient downside momentum and moved back to the resistance at $23.80. In case silver manages to settle above this level, it will head towards the next resistance at $24.00.
A successful test of the resistance at $24.00 will push silver towards the next resistance at $24.20. If silver gets above $24.20, it will move towards the resistance level which is located near the 20 EMA at $24.50.
On the support side, silver needs to settle below the support at $23.50 to have a chance to develop downside momentum in the near term. The next support level is located at $23.20. A move below the support at $23.20 will open the way to the test of the support at $22.90.
For a look at all of today’s economic events, check out our economic calendar.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.