Silver Stays Near $24.50 While Gold Pulls Back From Recent Highs

Silver ETF Pulls Back

Silver is currently trying to settle back below $24.50 while U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is moving towards $22.50.

The U.S. Dollar Index is currently trying to settle below the 50 EMA at 95.60. If the U.S. Dollar Index manages to settle below this level, it will move towards the support at 95.40 which will be bullish for silver. Weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.

Gold has recently made an attempt to get back below the support level at $1830 but failed to develop sufficient momentum while SPDR Gold Trust moved towards $171.50. In case gold settles back below $1830, it will head towards the next support level at $1845 which will be bearish for silver.

Gold/silver ratio managed to find support near the 75 level after the recent downside move. If gold/silver ratio manages to settle above 75.50, it will head towards the 76 level which will be bearish for silver.

Technical Analysis

Silver is currently stuck in the $24.25 – $24.50 range. In case silver manages to settle below the support at $24.25, it will gain additional downside momentum and head towards the next support level at $24.00. A successful test of this support level will open the way to the test of the next support at $23.70.

On the upside, silver needs to settle back above $24.50 to have a chance to gain upside momentum in the near term. RSI pulled back into the moderate territory, so there is enough room to develop momentum in case the right catalysts emerge.

In case silver settles above the resistance at $24.50, it will head towards the next resistance level at $24.80. A successful test of the resistance at $24.80 will push silver towards the resistance at $25.00. If silver gets above this level, it will head towards the resistance at $25.40.

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