FxWirePro- Silver Daily Outlook

Ichimoku analysis (4-hour chart)

Tenken-Sen- $30.45

Kijun-Sen- $29.80

Silver holds above $30.50 on the weak US dollar. It hit a high of  $30.69 and is currently trading around $30.54.

The weak US ADP employment and dismal US ISM manufacturing PMI increased the hopes of a rate cut by the Fed in Sep. Markets eye US NFP data for further direction.

The escalation of geo-political tension in the Middle East supports precious metals at lower levels..

Gold-silver ratio-

Gold/Silver ratio- 77.45. The gold-silver ratio showed a minor decline from 80.59 to 77.10 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 -$32.50

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 $31 and any breach above targets is $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.