Ichimoku analysis (4-hour chart)
Tenken-Sen- $29.515
Kijun-Sen- $29.25
Silver gained sharply despite the strong US dollar. It hit a high of $30.18 at the time of writing and is currently trading around $30.16.
Fed Reserve chairman Powell’s dovish comments in the ECB forum in Portugal have pushed the precious metal prices higher.
Markets await US FOMC meeting minutes today for further movement. The escalation of geo-political tension between Israel and Gaza also supports precious metals at lower levels..
Gold-silver ratio-
Gold/Silver ratio- 77.78. The gold-silver ratio showed a minor decline from 80.59 to 77.62 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 -$28.55
It trades above 21, 55- EMA, and 200 EMA in the 4-hour chart. The near-term support is around $29.80 and a break below the target of $29.38/$29. On the higher side, immediate resistance is around $30.25 and any breach above targets is $30.85/$31/$31.50/$32/$32.50.
It is good to buy on dips around $29.80 with SL at around $29.25, and TP at $31.50.
