Silver Rallies As Gold Moves Above The $1950 Level

Key Insights

• Gold managed to settle above the resistance at $1950, providing significant support to silver.
• Meanwhile, gold/silver ratio declined below the 78 level.
• A move above $25.30 will push silver towards the resistance at $25.60.

Silver ETF Starts The Week On A Strong Note

Silver  is currently trying to settle above the resistance at $25.30, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust   is trying to get to the test of the $23.50 level.

The U.S. Dollar Index is testing the resistance at the 100 level. If the U.S. Dollar Index manages to settle above this level, it will move towards the next resistance at 100.30, which may be bearish for silver and gold price today. However, it should be noted that rising geopolitical tensions have served as the key driver for precious metals today, so silver bulls may ignore the developments on the foreign exchange market.

Gold managed to get above the resistance at $1950 and tested the next resistance at $1965, while SPDR Gold Shares ETF  tested the $183 level. In case gold settles above $1965, it will head towards the resistance at $1975, which will be bullish for silver.

Gold/silver ratio declined below the 78 level and tested the support at 77.50. If gold/silver ratio manages to settle below 77.50, it will head towards the 77 level, which will be bullish for silver.

Technical Analysis

Silver is testing the resistance level at $25.30. If this test is successful, silver will move towards the next resistance, which is located at $25.60.

A successful test of the resistance at $25.60 will push silver towards the resistance at $25.80. In case silver gets above this level, it will head towards the resistance at $26.00.

On the support side, the previous resistance at $25.10 will serve as the first support level for silver. In case silver declines below this level, it will head towards the next support at the 20 EMA at $24.85. A move below the 20 EMA will push silver towards the support at $24.70.

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