Silver Tests Support At $25.20

Key Insights

• Silver moves lower for the second day in a row. 
• Stronger dollar has finally put some pressure on precious metals. 
• A move below $25.20 will push silver towards the support level at $25.00.

Silver ETF Is Losing Some Ground In Premarket Trading

Silver is currently trying to settle below the support level at $25.20, while the U.S. dollar is moving higher against a broad basket of currencies. Meanwhile, iShares Silver Trust  is trading near $23.35 in premarket trading.

The U.S. Dollar Index managed to settle above the resistance at 97.50 and is moving towards the next resistance level at 97.75. In case the U.S. Dollar Index gets above this level, it will head towards the 98 level, which may be bearish for silver and gold price today.

Gold is trading near the $1930 level, while SPDR Gold Trust is trying to settle above the $180 level in premarket trading. In case gold manages to settle above $1930, it will move towards the next resistance level at $1950, which will be bullish for silver.

Gold/silver ratio is testing the support level at 76. In case this test is successful, gold/silver ratio will move towards the next support at 75.50, which will be bullish for silver.

Technical Analysis

Silver is testing the support level at $25.20. If this test is successful, silver will move towards the next support level, which is located at $25.00.

A successful test of the support at $25.00 will open the way to the test of the next support at $24.70. In case silver declines below this level, it will head towards the next support level at $24.50.

On the upside, the previous support at $25.40 will serve as the first resistance level for silver. If silver gets back above this level, it will head towards the resistance at $25.60. A move above the resistance at $25.60 will push silver towards the resistance at $25.80.

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