Silver Tests Support At $25.80

Key Insights

• Silver pulls back after strong rally. 
• Gold moves below the $2000 level as traders take some profits off the table.
• A move below the support at $25.80 will push silver towards $25.60.

Silver ETF Is Losing Ground In Premarket Trading

Silver is currently trying to settle below the support at $25.80, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust declined below the $24.00 level in premarket trading

The U.S. Dollar Index gained strong downside momentum and settled below the support at 98.70. Currently, the U.S. Dollar Index is testing the next support level at 98.35. In case this test is successful, the U.S. Dollar Index will move towards the 98 level, which may provide some support to silver and gold price today. It should be noted that dynamics of demand for safe-haven assets will serve as the key driver for precious metals.

Gold pulled back below the $2000 level, while SPDR Gold Shares ETF declined below the $186 level in premarket trading. In case gold manages to settle below $2000, it will head towards the next support level at $1975, which will be bearish for silver.

Gold/silver ratio has recently moved back below the 77 level and is trying to develop additional downside momentum. In case this attempt is successful, it will head towards the support at 76.50, which will be bullish for silver.

Technical Analysis

Silver is testing the support level at $25.80. If silver manages to settle below this level, it will move towards the next support at $25.60.

A successful test of the support at $25.60 will push silver towards the next support at $25.30. A move below this level will open the way to the test of the support at $25.00.

On the upside, the previous support level at $26.00 will serve as the first resistance level for silver. If silver manages to settle back above this level, it will head towards the resistance at $26.15. A move above the resistance at $26.15 will push silver towards the resistance at $26.50.

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