Silver Retreats Amid Progress In Russia – Ukraine Negotiations

Key Insights

• Silver retreats amid first signs of real progress in negotiations between Russia and Ukraine. 
• The U.S. dollar is losing ground, but dollar’s weakness does not provide any support to precious metals. 
• A successful test of the support at $24.25 will push silver towards the support level at $23.90.

Silver ETF Is Under Strong Pressure At The Start Of The Trading Session

Silver is currently trying to settle below the support level at $24.25, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is testing the $22.30 level.

The U.S. Dollar Index gained strong downside momentum amid reports of progress in Russia – Ukraine negotiations. Other safe-haven assets like silver and gold have also found themselves under serious pressure. In this environment, dollar’s weakness will not provide support to silver and gold price today.

Gold settled below the support at $1915 and managed to get below the 50 EMA at $1905, while SPDR Gold Shares ETF made an attempt to settle below the $177 level. In case gold settles below the 50 EMA, it will move towards the support at $1880, which will be bearish for silver.

Gold/silver ratio managed to settle above the 78 level and is trying to settle above the resistance at 78.40. In case this attempt is successful, gold/silver ratio will move towards the 79 level, which will be bearish for silver.

Technical Analysis

Silver is testing the support level at $24.25. In case this test is successful, silver will move towards the next support level, which is located at $23.90.

A move below the support at $23.90 will push silver towards the support at $23.70. If silver declines below this level, it will head towards the next support at $23.40.

On the upside, a move above $24.25 will push silver towards the resistance at the 50 EMA at $24.50. If silver settles back above the 50 EMA, it will head towards the resistance level at $24.70. A successful test of this level will open the way to the test of the resistance at the 20 EMA at $25.00.

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