Silver Tests Support At $24.70

Key Insights

• Silver is moving lower as gold/silver ratio gets back above 77.50.
• Meanwhile, gold has moved closer to the support at $1915.
• A successful test of the support at $24.70 will push silver towards the next support level at $24.50.

Silver ETF Is Losing Ground At The Start Of The Trading Session

Silver  is currently trying to settle below the support at $24.70, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust has managed to get below the $23 level.

The U.S. Dollar Index faced resistance near the 99 level and declined towards the support at 98.35. In case the U.S. Dollar Index manages to settle below this level, it will move towards the next support at the 20 EMA at 98, which may provide some support to silver and gold price today.

Gold failed to settle above the resistance at $1935 and moved closer to the support level at $1915, while SPDR Gold Shares ETF moved towards the $179 level. In case gold manages to settle below the support at $1915, it will gain additional downside momentum and head towards the support at $1900, which will be bearish for silver.

Gold/silver ratio is testing the resistance at the 20 EMA at 77.40. In case this test is successful, gold/silver ratio will move towards the 50 EMA at 77.85, which will be bearish for silver.

Technical Analysis

Silver is testing the support level at $24.70. In case silver manages to settle below this level, it will head towards the support at $24.50.

A move below the support level at $24.50 will push silver towards the next support at the 50 EMA at $24.35. If silver declines below the 50 EMA, it will head towards the support level at $24.20.

On the upside, the previous support at the 20 EMA at $25.00 will serve as the first resistance level for silver. In case silver manages to settle back above this level, it will head towards the resistance at $25.30. A successful test of the resistance at $25.30 will push silver towards the next resistance level, which is located at $25.60.

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