FxWirePro- Silver Daily Outlook

Silver holds above $30 after ECB less dovish rate cut. It hit a high of $30.15 at the time of writing and is currently trading around $30.15.

The European Central Bank (ECB)  cut rates by 25 bpbs as expected. It also lowered rates on Marginal lending facility and refinancing operations by 60 bpbs to 3.65%.

US annual PPI dropped to 1.7% in Aug from 2.1% previous month, below the forecast of 1.8%.

Gold-silver ratio-

Gold/Silver ratio-88.04. The gold-silver ratio showed a minor decline from  89.72 to 85.28 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 -$30.25

It trades above 34, 55- EMA, and  200 EMA in the 4-hour chart. The near-term support is around $29.55 and a break below the target of $29.20/$28.75/28/$27.69. On the higher side, immediate resistance is around $30.25 and any breach above targets is $30.90/$31.75/ $32/$32.50.

It is good to buy on dips around $29.78-80 with SL at around $29 and TP at $32.50.