Silver Tests Support At $25.60

Key Insights

• Silver pulls back as gold moves below the support level at $1975.
• Gold/silver ratio is stuck below the 77 level, which is bullish for silver. 
• A move below $25.60 will push silver towards the support level at $25.30.

Silver ETF Is Losing Ground In Premarket Trading

Silver  is currently trying to settle below the support at $25.60, while the U.S. dollar is mostly flat against a broad basket of currencies. Meanwhile, iShares Silver Trust  is trying to get below $23.50 in premarket trading.

The U.S. Dollar Index has recently made an attempt to settle above the resistance at 98.70 but lost momentum and pulled back towards 98.50. If the U.S. Dollar Index settles below this level, it will move towards the support at 98.35, which will be bullish for silver and gold price today.

Gold managed to get below the support level at $1975 and is moving towards the support at $1950, while SPDR Gold Shares ETF is trying to settle below $183.50 in premarket trading. In case gold manages to settle below the support at $1950, it will gain additional downside momentum and head towards the next support at $1930, which will be bearish for silver.

Gold/silver ratio continues its attempts to settle below the support at the 77 level. In case gold/silver ratio manages to settle below this level, it will get to the test of the next support at 76.50, which will be bullish for silver.

Technical Analysis

Silver is testing the support level at $25.60. If silver settles below this level, it will move towards the next support at the recent lows at $25.30.

A move below the support at $25.30 will push silver towards the next support level, which is located near the 20 EMA at $25.00. In case silver declines below this level, it will head towards the support at $24.70.

On the upside, the previous support level at $25.80 will serve as the first resistance level for silver. If silver gets back above this level, it will head towards the resistance at $26.00. A successful test of the resistance at $26.00 will open the way to the test of the resistance at $26.15.

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