FxWirePro-Silver Daily Outlook

Silver gained above $30 as the market anticipates a rate cut in Sep. It hit a high of $30.17 yesterday and is currently trading around $30.04.

Powell stated that “The upside risks to inflation have diminished. And the downside risks to employment have increased,” He said “The time has come for policy to adjust,”

The escalation of the tension between Hamas and Israel supports Silver at lower levels.

Gold-silver ratio-

Gold/Silver ratio-83.69. The gold-silver ratio showed a minor decline from 85.82 yesterday to 83.69 as gold outperformed silver. 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 21, above the 55- EMA and 200 EMA in the 4-hour chart. The near-term support is around $29.60 and a break below the target of $29/$28.60/$27.80/$27.34. On the higher side, immediate resistance is around $30.25 and any breach above targets is $30.90/$31.75/ $32/$32.50.

Indicator (4-hour chart)

CCI (14)- Bullish

CCI (50)- Bullish

Average directional movement Index - Neutral.

It is good to buy on dips around $29.60 with SL at around $28.60 and TP at $32.50.