Silver ETF gains ground ahead of the weekend
Silver is currently trying to move back above $ 22.10 as the US dollar gains ground against a large basket of currencies. Meanwhile, iShares Silver Trust is testing the $ 20.50 level.
The US dollar index found itself under pressure following the release of the US inflation reports as inflation met analysts’ expectations. However, the US dollar index found support near 96.10 and rebounded towards 96.30. If the US dollar index manages to get back above 96.30, it will move to the resistance at 96.50 which will be bearish for silver and gold prices today.
Gold received support from lower Treasury yields and moved towards $ 1,785 while SPDR Gold Trust climbed above $ 166.50. In the event that gold settles above $ 1785 it will head to the 50 ERA at $ 1795 which will be bullish for silver.
Silver has managed to get back above $ 22.10 and is trying to gain some additional bullish momentum. The RSI has recently moved away from oversold territory, so there is plenty of room to gain ground in case the right catalysts emerge.
In the event that the silver settles above $ 22.10, it will head towards the resistance level at $ 22.30. A successful test of this level will push silver towards resistance at $ 22.60. If the silver rises above the resistance at $ 22.60, it will move to the next resistance level which is located at $ 22.90.
On the support side, silver needs to come back below $ 22.10 to have a chance to develop short term bearish momentum. A move below this level will push silver towards support at $ 21.90.
If the silver drops below $ 21.90, it will head to the next support at $ 21.50. A successful test of this level will pave the way for testing the support at $ 21.30.
For an overview of all of today’s economic events, check out our economic calendar.
This article originally appeared on FX Empire
More from FXEMPIRE:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.