On Monday, the Gold rate was moving in a limited channel, staying above the 200-day moving average. At the moment, it looks like the precious metal feels very comfortable just above the $ 26 area. The 50-day moving average continues to provide resistance, however, it rushed downward, which puts a little bearish pressure on the market. Therefore, the emergence of a certain pressure from sellers in this area is only a matter of time. If the precious metal breaks above the 50-day indicator and the $ 27 price point, it is likely that it will be able to fill the gap and open the way to the $ 27.75 level.
The shape of the candlestick formed on the chart indicates that buyers are ready to support the precious metal. There is plenty of technical support in the market given the ascending triangle and the $ 25 level. According to Christopher Lewis’s forecast, the sideways movement will continue in the short term.
Close attention should be paid to industrial demand, which remains quite high, but it should be noted that the strengthening of the dollar is working against the silver metal. It also makes sense to keep an eye on the overall health of the commodity market, which has begun to crack.
Likewise, Vladimir Zernov noted that the price of silver is stuck in a narrow range between $ 25.80 and $ 26.30, while the US currency is moving up against the broad basket of currencies.
The USDX index recently tried to strengthen above the 92.40 resistance, but lost momentum and pulled back to 92.30. If the indicator nevertheless breaks the barrier, it will move to the 92.80 level, which will act as a bearish factor for silver.
The gold / silver ratio moved to the test of the 69 line. If the indicator falls, it will move to the support of 68.70, which will optimistically affect the dynamics of the white precious metal.
Silver price recently made another attempt to gain a foothold above the 20-day EMA in the $ 26.30 area and approached the $ 25.80 zone. In the event of a breakdown of this key support line, it will head towards the $ 25.50 support. RSI is in moderate territory.
After the breakdown of the value of $ 25.50, the silver metal will drop to $ 25.30, and then $ 25.00. If the resistance of $ 26.30 is overcome, the upward momentum will strengthen, and then the asset will move to the next resistance at the 50-day EMA in the $ 26.60 area. Further upward movement will bring the price of silver to $ 27.00.