Silver holds above $30 on board-based US dollar selling. It hit a high of $31.30 at the time of writing and is currently trading around $30.67.
US dollar index and treasury yields plunged sharply after 50 bpbs dovish rate cut by the Fed.
US jobless claims - Positive (bullish for Silver)
Philly fed manufacturing PMI - Positive (Bullish for Silver).
Gold-silver ratio-
Gold/Silver ratio-82.90. 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 $31.30 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.
