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Silver Pulls Back Amid Global Market Sell-Off

By:
Vladimir Zernov
Published: Jan 24, 2022, 15:20 UTC

Silver settled below the support at $24.00 and is testing the next support level at $23.70.

Silver

In this article:

Silver ETF Is Under Strong Pressure

Silver is currently trying to settle below the support at $23.70 while U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to settle below the $22 level.

The U.S. Dollar Index has recently managed to get back above the 96 level and is trying to gain additional upside momentum. In case the U.S. Dollar Index manages to settle above 96, it will head towards the resistance at 96.25 which will be bearish for silver and gold price today.

Gold continues to trade in the range between the support at $1830 and the resistance at $1845 as it is supported by increased demand for safe-haven assets amid global market sell-off. Meanwhile, SPDR Gold Trust is trading near $171.50. In case gold stays above the support at $1830, it will get to another test of the resistance at $1845 which may provide more support to silver.

Gold/silver ratio rallied towards 77.50 and is trying to settle above this level. In case this attempt is successful, gold/silver ratio will head towards the 50 EMA at 78 which will be bearish for silver.

Technical Analysis

silver january 24 2022

Silver is currently testing the support level at $23.70. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

In case silver settles below $23.70, it will get to the test of the next support at $23.50. A move below this level will push silver towards the support at the 20 EMA at $23.30. If silver declines below the 20 EMA, it will move towards the next support level which is located at the 50 EMA at $23.20.

On the upside, a move above $23.70 will push silver towards the resistance at $24.00. In case silver gets above this level, it will move towards the next resistance at $24.25. A successful test of this level will open the way to the test of the resistance at $24.50.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.

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