Silver Retreats Towards $25.00

Key Insights

• Silver is losing ground as gold/silver ratio gets back to the 78 level. 
• Demand for safe-haven assets declines, which is bearish for silver. 
• A move below the support at $25.00 will open the way to the test of the next support level at $24.70.

Silver ETF Is Losing Ground At The Start Of The Week

Silver is currently trying to settle below the support level at $25.00, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below $23.20.

The U.S. Dollar Index has recently made an attempt to settle below the support level at 98.70 but failed to develop sufficient downside momentum and rebounded towards the resistance at 99. If the U.S. Dollar Index manages to settle back above this level, it will move towards 99.20, which may be bearish for silver and gold price today.

Gold settled below the support level at $1975 and is trying to settle below the next support at $1950, while SPDR Gold Shares ETF has managed to get below the $183 level. In case gold declines below the support at $1950, it will head towards the next support level at the 20 EMA near $1940, which will be bearish for silver.

Gold/silver ratio has recently made an attempt to settle above the resistance at the 50 EMA near the 78 level. A move above this level will open the way to the test of the resistance at 78.50, which will be bearish for silver.

Technical Analysis

Silver is testing the support level near the 20 EMA at $25.00. If silver manages to settle below this level, it will head towards the next support at $24.70.

A move below the support at $24.70 will push silver towards the support level at $24.50. In case silver declines below this level, it will head towards the support level, which is located near the 50 EMA at $24.20.

On the upside, the previous support at $25.30 will serve as the first resistance level for silver. If silver gets back above this level, it will head towards the next resistance at $25.60. A successful test of this level will open the way to the test of the resistance at $25.80.

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