Silver gained momentum after weak US CPI data.It hit a low of $28.07 yesterday and is currently trading around $28.81.
The European Central Bank (ECB) is expected to cut rates by 25 bpbs to 4% today. Markets eye commentary from ECB Lagarde for further movement. US annual CPI dropped to a 3-year low also supports precious metal prices. Silver demand increased by 19% from the previous year, According to Silver Institute.
Gold-silver ratio-
Gold/Silver ratio-88.04. The gold-silver ratio showed a minor decline from 89.72 to 87.24 as silver outperformed gold. The ratio is well above the historical average of 52. So silver will outperform gold in the long run. It is good to buy silver at lower levels compared to gold.
Major trend reversal level -$30.25
It trades above 34, 55- EMA, and 200 EMA in the 4-hour chart. The near-term support is around $28.40 and a break below the target of $28/$27.69/$27.15/$26.50. On the higher side, immediate resistance is around $29.20 and any breach above targets is $30.25/$30.90/$31.75/ $32/$32.50.
It is good to buy on dips around $28.60-62 with SL at around $28 and TP at $30.25.
