Silver

Silver Retreats As Gold/Silver Ratio Tests The 84 Level

Key Insights

  • Silver is losing ground despite the recent pullback of the U.S. Dollar Index. 
  • Meanwhile, gold is testing the resistance at $1880.
  • A move below the support at $22.30 will push silver towards the next support level at $22.10.

Silver ETF Is Under Pressure Ahead Of The Weekend

Silver  is currently trying to settle below the support at $22.30, while the U.S. dollar is losing ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below $20.70.

The U.S. Dollar Index faced resistance near the 104 level and declined below the support at 103.60. The next support level for the U.S. Dollar Index is located at 103.25. If the U.S. Dollar Index settles below this level, it will head towards the support at 103, which will be bullish for silver and gold price today.

Gold is trying to settle above the $1880 level, while SPDR Gold Shares ETF is trading above the $175 level. If gold moves above the resistance at $1880, it will head towards the next resistance at $1890, which will be bullish for silver.

Gold/silver ratio continues its attempts to settle above the 84 level. RSI for the gold/silver ratio is in the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge. If gold/silver ratio settles above 84, it will move towards the 85 level, which will be bearish for silver.

Technical Analysis

silver may 6 2022

Silver is testing the support level at $22.30. In case this test is successful, silver will get to another test of the next support, which is located at $22.10.

A move below the support level at $22.10 will open the way to the test of the support at $21.90. If silver manages to settle below this level, it will head towards the next support at $21.70.

On the upside, the nearest resistance level for silver is located at $22.50. If silver settles back above this level, it will head towards the next resistance at $22.70. A successful test of the resistance at $22.70 will push silver towards the resistance at $22.90.

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