Silver Stays Range-Bound Ahead Of The Weekend

Silver ETF Lacks Momentum

Silver has recently made another attempt to settle above the resistance at $23.20 but failed to develop sufficient upside momentum and pulled back while U.S. dollar gained some ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trading near the 50 EMA at $21.30.

The U.S. Dollar Index failed to settle below the support level at 94.75 and moved back to the resistance level at 95. In case the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at 95.20 which will be bearish for silver and gold price today. Stronger dollar is bearish for precious metals as it makes them more expensive for buyers who have other currencies.

Gold remains stuck in the range between the support at $1815 and the resistance at $1830 while SPDR Gold Trust is trading in the $170 – $170.50 range. If gold manages to settle above $1830, it will gain additional upside momentum and move towards the next resistance at $1845 which will be bullish for silver.

Gold/silver ratio has recently made an attempt to settle above the 20 EMA at 79.25 but lost momentum and pulled back towards the 79 level. If gold/silver ratio settles below this level, it will move towards the 50 EMA at 78.35 which will be bullish for silver.

Technical Analysis

Silver has recently moved closer to the support level at $23.00. In case silver manages to settle below this support level, it will get to the test of the next support at $22.90.

A successful test of the support at $22.90 will open the way to the test of the support at the 20 EMA at $22.80. If silver declines below this level, it will head towards the support at $22.60.

On the upside, the nearest resistance for silver is located at $23.20. In case silver settles above this level, it will head towards the next resistance at $23.50. A move above $23.50 will push silver towards the resistance which is located at $23.70.

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