Silver Tests Resistance At $25.40

Key Insights

• Silver rallies as Russia attacks Ukraine
• Gold tests resistance at $1975
• Near-term dynamics will depend on geopolitical developments

Silver ETF Rallies In Premarket Trading

Silver is currently trying to settle above 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 get above the $23.50 level in premarket trading.

The U.S. Dollar Index managed to settle above the 97 level and is testing the next resistance at 97.25 as traders rush to safety due to war in Ukraine. In case the U.S. Dollar Index settles above 97.25, it will move towards the resistance at the yearly highs at 97.45. In a calm market, such a move would have been bearish for silver and gold price today, but traders will likely ignore strong dollar in today’s trading session.

Gold moved above the $1950 level and tested the resistance at $1975, while SPDR Gold Trust climbed above $182.50 in premarket trading. If gold manages to settle above $1975, it will move towards the psychologically important $2000 level, which will be bullish for silver.

Technical Analysis

Silver is trying to get back above the resistance at $25.40. If silver settles above this level, it will move towards the next resistance, which is located at the recent highs at $25.60.

If silver manages to settle above $25.60, it will head towards the resistance level at $25.80. A move above this level will open the way to the test of the resistance at $26.00.

On the support side, the previous resistance level at $25.15 will serve as the first support level for silver. In case silver declines below this level, it will move towards the next support at $25.00. A successful test of this support level will open the way to the test of the support at $24.70.

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