Silver Rebounds Despite Stronger Dollar

Key Insights

• Silver and gold gain some ground at the start of the week. 
• Gold/silver ratio has stabilized near the 77 level. 
• A move above the $25 level will push silver towards the resistance at $25.30.

Silver ETF Is Moving Higher

Silver is currently trying to settle back above the $25 level, while the U.S. dollar is gaining some ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle above $23.25.

The U.S. Dollar Index continues to test the resistrance level at 98.35. A move above this level will push the U.S. Dollar Index towards the next resistance at 98.70, which may be bearish for silver and gold price today.

Gold remains stuck in the $1915 – $1935 range, while SPDR Gold Shares ETF is moving towards the $181 level. If gold settles above the resistance at $1935, it will head towards the next resistance at $1950, which will be bullish for silver.

Gold/silver ratio has recently made another attempt to settle above the 77 level but failed to develop sufficient upside momentum and pulled back. In case gold declines below the nearest support level at 76.50, it will move towards the next support at 76, which will be bullish for silver.

Technical Analysis

Silver has recently managed to get back above the $25 level and is trying to gain additional upside momentum. In case this attempt is successful, silver will get to the test of the next resistance level, which is located at $25.30.

A move above the resistance at $25.30 will push silver towards the resistance level at $25.60. If silver settles above this level, it will head towards the next resistance at $25.80.

On the support side, a move below $25.00 will push silver towards the support level at $24.70. In case silver declines below this level, it will head towards the next support at the recent lows at $24.50. A move below $24.50 will push silver towards the support at the 50 EMA at $24.35.

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