Silver ETF Gained Strong Upside Momentum
Silver is currently trying to settle above the resistance at $25.00 while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle above the resistance at $23.05.
The U.S. Dollar Index has recently tried to get to the test of the resistance at 94.50 but lost momentum and declined towards the support at 94.20. In case the U.S. Dollar Index settles below this level, it will move towards the 94 level which will be bullish for silver and gold price today.
Gold also gained strong upside momentum after the release of U.S. inflation reports which showed that Inflation Rate grew by 6.2% year-over-year in October compared to analyst consensus which called for growth of 5.8%. Gold is currently trying to settle above $1860 while SPDR Gold Trust is currently testing the resistance at $174. The nearest significant resistance level for gold is located at $1875. In case gold manages to get to the test of this level, silver will get more support.
Gold/silver ratio declined below the 75 level and is testing the support at 74.50. In case this test is successful, gold/silver ratio will move towards the 74 level which will be bullish for silver.
Silver managed to settle above the resistance at $24.80 and is trying to settle above the next resistance level at $25.00. RSI remains in the moderate territory, and there is enough room to gain additional upside momentum in case the right catalysts emerge.
If silver settles above $25.00, it will head towards the next resistance level which is located at $25.30. A move above this level will open the way to the test of the resistance at $25.50. In case silver gets above $25.50, it will head towards the resistance level at $25.80.
On the support side, the previous resistance at $24.80 will serve as the first support level for silver. A successful test of this level will push silver towards the next support at $24.50. In case silver declines below this level, it will head towards the support at $24.20.
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