Silver ETF Gains Ground As Dollar Declines
Silver is currently trying to settle back above the resistance at $22.60 while U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle back above $20.80.
The U.S. Dollar Index has recently managed to get below the 97 level and is trying to gain additional downside momentum. In case this attempt is successful, the U.S. Dollar Index will move towards the next support level at 96.70 which will be bullish for silver and gold price today. Weaker dollar is bullish for precious metals as it makes them cheaper for buyers who have other currencies.
Gold has recently made an attempt to settle back above the $1800 level while SPDR Gold Trust tested the $168 level. In case gold settles above $1800, it will gain additional upside momentum and head towards the resistance at $1815 which will be bullish for silver.
Gold/silver ratio continues its attempts to settle above the psychologically important 80 level. In case gold/silver ratio settles above 80, it will gain additional upside momentum which will be bearish for silver.
Silver failed to settle below the support at $22.30 and tested the resistance at $22.60. In case silver manages to settle back above $22.60, it will move towards the next resistance level which is located at $22.80. A move above the resistance at $22.80 will open the way to the test of the resistance at $23.10.
On the support side, silver needs to settle below the support level at $22.30 to have a chance to gain downside momentum in the near term. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.
If silver declines below the support at $22.30, it will move towards the next support at $22.10. A successful test of this support level will push silver towards $21.90. In case silver settles below $21.90, it will continue its downside move and head towards the support level which is located at $21.70.
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