Silver ETF approaches annual lows
Silver has managed to break below the support at $ 21.90 and is heading towards the next support level at $ 21.50 as the US Dollar loses ground against a large basket of currencies. Meanwhile, iShares Silver Trust is trying to establish itself below $ 20.10.
The US dollar index recently attempted to test support at 96, but lost momentum and moved back above 96.25. If the US dollar index manages to stabilize above this level, it will head to the next resistance level at 96.50, which will be bearish for silver and gold prices today. . A strong dollar is bearish for precious metals because it makes them more expensive for buyers who have other currencies.
Meanwhile, gold gained momentum after the United States announced that producer prices rose 9.6% year-on-year in November from analysts’ consensus of 9.2. %. Currently gold is trying to stabilize below the support at $ 1775 while SPDR Gold Trust has moved below $ 165.50. That’s a rather odd reaction to data pointing to rising inflation, and it looks like markets are expecting the Fed to aggressively hike rates in 2022, which will be bearish for precious metals. In the event that gold passes the test of the next support level at $ 1,750, silver will come under more pressure.
Silver is heading towards the support level at $ 21.50. The RSI is close to oversold territory, but there is enough room to gain additional bearish momentum in case the right catalysts emerge.
If the silver manages to stabilize below $ 21.50, it will head to the next support level at $ 21.30. A move below this level will push silver towards support at $ 20.75.
On the upside, the previous support level at $ 21.90 will serve as the first level of resistance for silver. In the event that the silver goes back above $ 21.90, it will move to the next resistance which is located at $ 22.10. A move above $ 22.10 will pave the way for testing the resistance level at $ 22.30.
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