Silver pared its gains on DXY strength. It hit a low of $27.68 yesterday and is currently trading around $28.07.
China’s PPI dropped to -1.8% y/y, below forecast of -1.5%. The CPI also came below estimate at 0.60% compared to 0.70%.
Silver prices showed some weakness after mixed US jobs data. The number of jobs added came below forecast, unemployment dropped to 4.2%, while wage inflation surged to 3.%.
Gold-silver ratio-
Gold/Silver ratio-88.04. The gold-silver ratio showed a minor jump from 83.69 to 89.76 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 below 21, above the 55- EMA, and below 200 EMA in the 4-hour chart. hourly chart. The near-term support is around $27.70 and a break below the target of $27.15/$26.50. On the higher side, immediate resistance is around $28.85 and any breach above targets is $29.25$30.90/$31.75/ $32/$32.50.
It is good to sell on rallies around $28.48-50 with SL at around $29.20 and TP at $32.50.
