FxWirePro- Silver Daily Outlook

Ichimoku analysis (4-hour chart)

Tenken-Sen- $31.43

Kijun-Sen- $31.36

silver lost its shine yesterday despite the weak US dollar.It hit a low of $30.77   at the time of writing and is currently trading around $31.24.

The US dollar index pared some of its gains, amid weak US GDP data. Markets eyes US PCE data for further movement. Any surge in inflation will reduce the chance of rate cut by the Fed in Sep.

Hawkish comments from Fed members such as Bostic and Neel Kashkari  puts pressure on Silver at higher levels.

Major economic data for the day

US PCE  (12:30 pm GMT)

Gold-silver ratio-

Gold/Silver ratio- 75.08. The ratio rebounded from 73.11 to 75.92, well above the historical average of 52. So silver will outperform gold. It is good to buy silver at lower levels compared to gold.

Major trend reversal level -$3

It trades above 21 and above 55- EMA, and 200 EMA in the 4-hour chart. The near-term support is around $30 and a break below the target of $29.25/$28.48. On the higher side, immediate resistance is around $31.30 and any breach above targets is $32/$32.50.

It is good to buy on dips around $30.75-80 with SL around $30 for TP of $35.