Silver Stays Range-Bound As Dollar Rallies To New Highs

Key Insights

• Demand for safe-haven assets remains strong ahead of the weekend. 
• However, silver’s gains are limited due to the strong performance of the U.S. dollar. 
• A move above $25.40 will push silver towards the resistance at $25.60.

Silver ETF Gains Some Ground In Premarket Trading

Silver is currently stuck in the range between the support at $25.20 and the resistance at $25.40, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust  is trying to settle above $23.30 in premarket trading.

The U.S. Dollar Index gained strong upside momentum and moved above the resistance at 98.70. In case the U.S. Dollar Index manages to settle above this level, it will head towards the resistance at 99, which will be bearish for silver and gold price today.

Gold received strong support near the $1930 level and tested the resistance at $1950, while SPDR Gold Trust settled above $181.50 in premarket trading. If gold manages to settle above $1950, it will gain additional upside momentum and head towards the resistance at $1975, which will be bullish for silver.

Gold/silver ratio is currently trying to settle back above the 77 level. In case this attempt is successful, gold/silver ratio will move towards the resistance near 77.40, which will be bearish for silver.

Technical Analysis

Silver is trading in the $25.20 – $25.40 range. If silver manages to settle above $25.40, it will head towards the resistance at the recent highs at $25.60.

A successful test of the resistance at $25.60 will push silver towards the next resistance at $25.80. In case silver gets above this level, it will head towards the resistance at $26.00.

On the support side, a move below $25.20 will open the way to the test of the support at $25.00. In case silver declines below this level, it will head towards the support level at $24.70. A move below the support at $24.70 will push silver towards the support at $24.50.

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