Silver Retreats As Gold Pulls Back Towards The $1965 Level

Key Insights

• Gold managed to settle below the support at $1975 and tested the next support at $1965, which was bearish for silver. 
• Gold/silver ratio moved back above the 77 level. 
• A move below the support at $25.60 will push silver towards the next support level at $25.30.

Silver ETF Is Under Strong Pressure At The Start Of The Trading Session

Silver  is currently trying to settle back below the support at $25.60, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust  is testing the $23.50 level.

The U.S. Dollar Index is trying to settle above the 101 level. In case this attempt is successful, the U.S. Dollar Index will head towards the resistance at 101.10, which will be bearish for silver and gold price today.

Gold  managed to settle below the support at $1975 and is testing the next support level at $1965, while SPDR Gold Shares ETF declined towards the $183 level. In case gold manages to settle below $1965, it will head back towards the support at $1950, which will be bearish for silver.

Gold/silver ratio failed to settle below the support at 76 and rebounded towards the resistance level at 77. In case gold/silver ratio settles above this level, it will head towards the 20 EMA at 77.50, which will be bearish for silver.

Technical Analysis

Silver is testing the support level at $25.60. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

In case silver manages to settle below $25.60, it will head towards the support level at $25.30. A move below this level will open the way to the test of the support at $25.10. If silver settles below $25.10, it will move towards the next support level, which is located at $24.90.

On the upside, a move above $25.60 will push silver towards the resistance level at $25.80. If silver climbs back above this level, it will head towards the next resistance at $26.00. A successful test of this level will open the way to the test of the resistance at $26.15.

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