Silver ETF declines amid concerns over novel coronavirus variant
Silver recently attempted to stabilize below support at $ 23.20 but rebounded towards the $ 23.50 level as the US dollar lost ground against a large basket of currencies. Meanwhile, iShares Silver Trust is trying to establish itself below $ 21.60.
The US dollar index moved below the support level at 96.50 and attempted to move below the next support at 96.25. If the US dollar index drops below 96.25, it will move to the 96 level which will be bullish for silver and gold prices today.
Gold received support and returned above the $ 1,800 level as traders rushed to buy assets from Heaven amid concerns over the new variant of the coronavirus. SPDR Gold Trust is trying to pass the 50 EMA test near $ 168.75. In case gold stabilizes above the $ 1800 level, it will head to the next resistance at the 20 EMA at $ 1815 which will be bullish for silver.
The Gold / Silver ratio stood above 76.50 and attempted to break above the 77 level. A move above 77 will pave the way for the test of resistance at 77.50 which will be bearish for the money.
It should be noted that silver is likely to be less supported than gold today, as it is more dependent on industrial demand.
Silver continues its attempts to settle below the support level at $ 23.50. If the silver settles below this level, it will pass another test of the next support which is at $ 23.20.
A move below $ 23.20 will push silver towards support at $ 22.90. If the silver drops below $ 22.90, it will move to the next support at $ 22.60.
On the upside, a move above $ 23.50 will push silver towards resistance which recently emerged at $ 23.70. A successful test of this level will pave the way for the resistance test at $ 23.90. If the silver goes over that level, it will pass the 50 EMA test which sits around $ 24.00.
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