Silver Tests Resistance At $26.15

Key Insights

• Silver moved above the $26 level as gold/silver ratio declined below the 77 level. 
• Gold settled above the $2000 level, providing additional support to silver. 
• A move above $26.15 will push silver towards the resistance at $26.50.

Silver ETF Rallies In Premarket Trading

Silver is currently trying to settle above the resistance at $26.15, while the U.S. dollar is losing some ground against a broad basket of currencies. Meanwhile, iShares Silver Trust has managed to get above $24.20 in premarket trading.

The U.S. Dollar Index has recently made an attempt to settle below the support at the 99 level but failed to develop sufficient downside momentum. If the U.S. Dollar Index manages to settle below this level, it will head towards the support at 98.70, which will be bullish for silver and gold price today.

Gold rallied above the $2000 level and tested the resistance at $2020, while SPDR Gold Trust moved above the $188 level in premarket trading. In case gold settles above $2020, it will move towards the resistance at $2050, which will be bullish for silver.

Gold/silver ratio faced strong resistance near the 50 EMA at 78.20 and declined below the 77 level. Currently, gold/silver ratio is trying to get below 76.50. In case this attempt is successful, gold/silver ratio will head towards the 76 level, which will be bullish for silver.

Technical Analysis

Silver managed to get above the resistance level at $26.15 and is trying to develop additional upside momentum. In case this attempt is successful, silver will head towards the resistance at $26.50.

A move above the resistance at $26.50 will push silver towards the next resistance at $26.75. In case silver manages to settle above this level, it will head towards the next resistance at $27.00.

On the support side, a move below $26.15 will push silver towards the support level at $26.00. If silver declines below this level, it will head towards the next support at $25.80. A successful test of the support at $25.80 will open the way to the test of the next support at $25.60.

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