Silver gained above $31 as US dollar weakened. It hit a high of $31.20 at the time of writing and is currently trading around $30.67.
US Fed surprise 50 bpbs rate cut has increased demand for safe-haven assets like Gold and Silver. China’s Silver imports surged to 400 tonnes in June -July due to an increase in demand for solar products.
Markets eye US jobless claims and Philly fed manufacturing PMI for further direction.
Gold-silver ratio-
Gold/Silver ratio-82.95. The gold-silver ratio showed a minor decline from 85.72 to 82.85 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 34, 55- EMA, and 200 EMA in the 4-hour chart. The near-term support is around $30.80, and a break below the target of $30.40/ $30/$29.60/$29.60/$28.75/28/$27.69. On the higher side, immediate resistance is around $31.25 and any breach above targets is $31.75/ $32/$32.50.
It is good to buy on dips around $30.70-72 with SL at around $29.69 and TP at $32.50.
