Silver Rallies As Gold/Silver Ratio Moves Towards 76

Key Insights

• Silver gained strong upside momentum as gold/silver ratio declined. 
• Gold managed to get above the important resistance level at $1950, which was bullish for silver. 
• A successful test of the resistance at $25.60 will push silver towards the next resistance level at $25.80.

Silver ETF Moves Towards $23.70 At The Start Of The Trading Session

Silver is currently trying to settle above the resistance at $25.60, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust  is trying to get above $23.70.

The U.S. Dollar Index has faced some resistance near 98.90. In case the U.S. Dollar Index gets above this level, it will get to the test of the resistance at 99, which may put some pressure on silver and gold price today. However, traders will likely focus on the dynamics of demand for safe-haven assets.

Gold  managed to get above the resistance at $1950, while SPDR Gold Shares ETF tested the $182.50 level. In case gold settles above $1950, it will move towards the next resistance at $1975, which will be bullish for silver.

Gold/silver ratio settled below the 77 level and is trying to settle below the next support at 76.50. In case this attempt is successful, gold/silver ratio will move towards the 76 level, which will be bullish for silver.

Technical Analysis

Silver is testing the resistance at $25.60. If silver settles above this level, it will move towards the next resistance level, which is located at $25.80.

A successful test of the resistance at $25.80 will push silver towards the resistance at $26.00. In case silver manages to settle above $26.00, it will head towards the resistance at $26.30.

On the support side, the previous resistance at $25.30 will serve as the first support level for silver. In case silver moves back below this level, it will head towards the support at the 20 EMA at  $25.05. A successful test of the support at the 20 EMA will open the way to the test of the next support level at $24.70.

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