Silver Tests Support At $24.55

Key Insights

• Silver is under pressure as gold/silver ratio tests the 79 level. 
• Gold continues to trade in a tight range. 
• A move below the 50 EMA will push silver towards the support level at $24.25.

Silver ETF Is Losing Ground At The Start Of The Week

Silver continues its attempts to settle below the support level at the 50 EMA at $24.55, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below $23.50.

The U.S. Dollar Index managed to settle above the resistance at 98.70 and is trying to get to the test of the next resistance level at 99. If the U.S. Dollar Index gets above this level, it will move towards the next resistance at 99.20, which will be bearish for silver and gold price today.

Gold  remains stuck in the $1915 – $1935 range, while SPDR Gold Shares ETF is trading near the $180 level. If gold manages to get back above the $1935 level, it will gain additional upside momentum, which will be bullish for silver.

Gold/silver ratio is currently testing the resistance at the 79 level. If this test is successful, gold/silver ratio will head towards the 80 level, which will be bearish for silver.

Technical Analysis

Silver is testing the support level at the 50 EMA at $24.55. In case silver declines below this level, it will move towards the next support at $24.25.

A successful test of the support at $24.25 will open the way to the test of the support at $23.90. If silver settles below this level, it will head towards the next support level, which is located at $23.70.

On the upside, silver needs to stay above the 50 EMA to have a chance to gain upside momentum in the near term. The next resistance level for silver is located at $24.70.

If silver climbs above $24.70, it will head towards the resistance at the 20 EMA at $24.95. A move above this level will push silver towards the resistance at $25.30.

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