Silver Pulled Back After An Unsuccessful Attempt To Settle Above $26

Key Insights

  • Silver made an attempt to settle above the $26 level but lost momentum and pulled back. 
  • Gold faced resistance at the $2000 level. 
  • A move above $25.60 will push silver back towards the resistance level at $25.80.

Silver ETF Moves Lower In Premarket Trading

Silver is currently trying to settle back above $25.60, while the U.S. dollar is moving higher against a broad basket of currencies. Meanwhile, iShares Silver Trust is located near $23.50 in premarket trading.

The U.S. Dollar Index has recently settled in the range between the support at 98.70 and the resistance at the 99 level. A move above the 99 level will open the way to the test of the resistance at 99.20, which will be bearish for silver and gold price today.

Gold tested the resistance at the psychologically important $2000 level but lost momentum and pulled back towards the support at $1975, while SPDR Gold Trust moved above $184 in premarket trading. In case gold settles back below the support at $1975, it will gain additional downside momentum and head towards the support at $1950, which will be bearish for silver.

Gold/silver ratio settled above the 77 level and made an attempt to settle above 77.50. A move above this level will push gold/silver ratio towards the 20 EMA at 77.90, which will be bearish for silver.

Technical Analysis

silver march 7 2022

Silver failed to settle below the support level at $25.40 and is testing the nearest resistance at $25.60. If this test is successful, silver will head towards the next resistance level, whic is located at $25.80.

A move above the resistance at $25.80 will push silver towards the resistance at $26.00. If silver manages to settle above this level, it will head towards the resistance at the recent highs at $26.15.

On the support side, silver needs to settle below $25.40 to have a chance to develop downside momentum in the near term. The next support level for silver is located at $25.20. A successful test of this level will push silver towards the support at $25.00.

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