Silver Declines As U.S. Dollar Moves Higher
Silver continues its attempts to settle below the support at $23.50 while the U.S. dollar is gaining ground against a broad basket of currencies.
The U.S. Dollar Index has recently managed to get above the resistance at 93.10. It should be noted that this may be a speculative move ahead of Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium, so the situation may change quickly when Powell begins to speak. The next resistance level for the U.S. Dollar Index is located at 93.40, and a move towards this level will be bearish for silver and gold price today.
Meanwhile, gold made an attempt to settle above the $1800 level but failed to develop sufficient upside momentum and pulled back. As a result, gold remains in the range between the support at $1775 and the resistance at $1800. In case gold declines below the support at $1775, it will head towards the next support level at $1750 which will be bearish for silver.
Gold/silver ratio managed to get above the 76 level and continues to move higher. The nearest resistance level for gold/silver ratio is located at 76.40. If gold/silver ratio settles above this level, it will head towards the resistance at 76.80 which will be bearish for silver.
Silver is currently testing the support level at $23.50. A move below the support at $23.50 will open the way to the test of the next support at $23.20.
In case silver declines below $23.20, it will head towards the support level at $22.90. If silver manages to settle below $22.90, it will move towards the next support at $22.60.
On the upside, silver must get back above $23.50 to have a chance to develop upside momentum in the near term. A move above this level will push silver towards the resistance at $23.80.
In case silver gets above $23.80, it will head towards the next resistance level which is located near the 20 EMA at $24.00. A successful test of this level will open the way to the test of the resistance at $24.20.
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