Silver Retreats Despite Weaker Dollar

Key Insights

• Silver remains under pressure while gold is trading near the $1915 level.
• Dollar’s weakness fails to provide enough support to precious metals ahead of Fed Interest Rate Decision.
• Expect more volatility today as markets will react to Fed Chair Powell’s comments.

Silver ETF Is Trying To Settle Below $23

Silver continues its attempts to settle below the support level at $24.70, while the U.S. dollar is under pressure against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle back below the $23 level.

The U.S. Dollar Index is testing the support level at 98.70. If this test is successful, the U.S. Dollar Index will move towards the next support at 98.35, which may provide some support to silver and gold price today.

Meanwhile, gold has settled near the support level at $1915 while SPDR Gold Shares ETF is trading near the $179 level. If gold declines below the support at $1915, it will move towards the next support at $1900, which will be bearish for silver.

Gold/silver ratio settled below the 20 EMA at 77.60 and is testing the support level at 77. In case gold/silver ratio manages to settle below this level, it will move towards the next support at 76.50, which will be bullish for silver.

Technical Analysis

Silver continues to test the support level at $24.70. In case silver manages to settle below this level, it will move towards the support level at $24.50.

A move below the support level at $24.50 will open the way to the test of the next support, which is located at the 50 EMA near $24.20. If silver declines below this level, it will head towards the support at $23.90.

On the upside, the nearest resistance level for silver is located at the 20 EMA at $24.95. If silver settles back above this level, it will head towards the resistance at $25.30.

A successful test of the resistance at $25.30 will push silver towards the next resistance at $25.60. In case silver moves above this level, it will head towards the resistance at $25.80.

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