Silver Tests Resistance At $24.70

Key Insights

• Silver continues to move higher amid strong demand for safe-haven assets.
• Gold/silver ratio declines, which is bullish for silver. 
• A move above $24.70 will push silver towards the resistance at $25.00.

Silver ETF Gains Ground In Premarket Trading

Silver continues its attempts to settle above the resistance at $24.70, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to get above $22.80 in premarket trading.

The U.S. Dollar Index received support near 96.70 and managed to get above the resistance level at 97. If the U.S. Dollar Index settles above this level, it will move towards the next resistance at 97.25, which may be bearish for silver and gold price today, although the dynamics of demand for safe haven assets will remain the key driver for precious metals.

Gold has recently made another attempt to settle above $1915, while SPDR Gold Trust is trying to settle above the $179 level in premarket trading. In case gold manages to settle above $1915, it will get to the test of the resistance at $1930, which will be bullish for silver.

Gold/silver ratio managed to settle below the 78 level and is moving towards 77.50. If gold/silver ratio declines below this level, it will head towards the 77 level, which will be bullish for silver.

Technical Analysis

Silver is testing the resistance at $24.70. If this test is successful, silver will move towards the next resistance level, which is located at $25.00. A move above this level will push silver towards the resistance at $25.20. In case silver settles above $25.20, it will head towards the resistance at $25.40.

On the support side, the previous resistance at $24.50 will serve as the first support level for silver. A move below this level will open the way to the test of the support at $24.20. If silver manages to settle below $24.20, it will head towards the next support at $24.00.

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