- Global markets have calmed down a bit
- Demand for safe-haven assets decreased, which was bearish for silver
- Gold moved below the psychologically important $1900 level
Silver ETF Is Losing Ground In Premarket Trading
Silver is currently trying to settle back below the support at $24.00, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is moving towards the $22.00 level in premarket trading.
The U.S. Dollar Index has recently managed to get back below the 97 level and is trying to settle below the next support level at 96.70. In case this attempt is successful, the U.S. Dollar Index will head towards the support at 96.50. In a usual trading day, a weaker dollar would have been bullish for silver and gold price today. However, the current weakness of the dollar highlights the move out of safe-haven assets, which is bearish for precious metals.
Gold settled back below the $1900 level and is heading towards the next support level at $1875, while SPDR Gold Trust is moving towards the $176 level in premarket trading. In case gold gets to the test of the support at $1875, silver will find itself under more pressure.
Gold/silver ratio managed to get above the 50 EMA at 78.60 and is testing the next resistance at the 20 EMA at 78.85. If gold/silver ratio gets above this level, it will move towards the 80 level, which will be bearish for silver.
Silver is testing the support at $24.00. If this test is successful, silver will move towards the next support level at $23.85.
A move below $23.85 will open the way to the test of the support at the 20 EMA at $23.70. In case silver declines below this level, it will head towards the next support at the 50 EMA at $23.40.
On the upside, the nearest resistance level for silver is located at $24.20. If silver climbs back above this level, it will move towards the resistance at $24.50.
A successful test of the resistance at $24.50 will push silver towards the resistance at $24.70. If silver moves above this level, it will head towards the next resistance level at $25.00.
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