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Silver gains ground when the dollar goes down
Silver recently made another attempt to level above the resistance at USD 26.30 while the US dollar lost ground against a broad basket of currencies.
The US dollar index is currently moving towards recent lows near 91.50. If the US dollar index breaks below 91.50, it will test the support at 91.40, which will be bullish for silver and gold today.
Meanwhile, gold continues to receive strong support near $ 1775 and is trying to develop upward momentum. If successful, gold will test the resistance at $ 1800, which will be bullish for silver and other precious metals.
The gold / silver ratio has recently tried to settle below support at the 50 EMA at 68. If the gold / silver ratio falls below the 50 EMA it will gain additional bearish momentum that will be bullish for silver.
Today the US reported that the PCE price index was up 3.9% yoy in May, compared with analyst consensus which called for 4.2% growth. This report served as a bullish catalyst for precious metals as it indicated that household inflation was not rising as fast as expected.
Silver continues its attempts to level above the resistance at $ 26.30. If silver rises above this level, it will head for the next resistance at $ 26.65.
A successful test of the resistance at $ 26.65 will drive silver to test the next level of resistance, which is the 50 EMA at $ 26.85. If silver manages to settle above the 50 EMA, it will head for resistance at $ 27.00.
On the support side, the next level of support for silver is at $ 25.80. This support level has already been tested many times and has proven its strength. If silver breaks below the support at $ 25.80, it will gain bearish momentum and move towards the next support at $ 25.50. Movement below this level will pave the way for testing the support at USD 25.30.
You can find an overview of all today’s economic events in our economic calendar.
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