- Silver continues to move lower as demand for safe-haven assets declines.
- Gold tests the support level at $1915.
- A successful test of the support at $24.70 will push silver towards the next support at $24.50.
Silver ETF Is Losing Ground
Silver is currently testing the support level at $24.70, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to get below the support at $22.80.
The U.S. Dollar Index settled below the 99 level and is testing the next support at 98.70. If the U.S. Dollar Index declines below this level, it will move towards the support at 98.35, which may be bullish for silver and gold price today. However, it should be noted that general demand for safe-haven assets remains the key driver for precious metals.
Gold settled below the 20 EMA and is testing the next support level at $1915 while SPDR Gold Shares ETF is trying to settle below the $179 level. If gold settles below $1915, it will head towards the support at the $1900 level, which will be bearish for silver.
Gold/silver ratio has recently made another attempt to settle above the resistance at the 50 EMA at 78.05 but failed to develop sufficient upside momentum and pulled back. In case gold/silver ratio settles below the support at 77.50, it will head towards the 77 level, which will be bullish for silver.
Silver is testing the support level at $24.70. If this test is successful, silver will move towards the next support level at $24.50.
In case silver manages to settle below the support at $24.50, it will head towards the next support level, which is located at the 50 EMA at $24.20. RSI remains in the moderate territory, so there is plenty of room to gain additional downside momentum in case the right catalysts emerge.
On the upside, silver needs to get back above the 20 EMA at $24.95 to have a chance to develop upside momentum in the near term. The next resistance level for silver is located at $25.30.
If silver settles above the resistance at $25.30, it will head towards the next resistance level at $25.60. A move above this level will push silver towards the resistance at $25.80.
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