Silver lost its shine on weal global economic outlook.It hit a high of $31.42 and is currently trading around $30.54.
Weak Global PMI-
German flash manufacturing and services PMI in Sep came at 40.30 and 50.6, below forecast of 42.40 and 51.10.
UK flash Manufacturing PMI declined to 51.50 in September from the previous month's 52.50, below the forecast of 52.50. While Services PMI dropped from 53.70 to 52.5 in Sep, compared to a forecast of 53.50.
The composite PMI in Sep came in at 52.90 vs 53.5 (expected) and the previous month's 53.80.
Gold-silver ratio-
Gold/Silver ratio-85.72. The gold-silver ratio showed a minor jump from 82.90 to 86.10 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 -$32.50
It trades below 34, above 55- EMA, and 200 EMA in the 4-hour chart. The near-term support is around $30 and a break below the target of $29.60/$29.60/$28.75/28/$27.69. On the higher side, immediate resistance is around $30.80 and any breach above targets is $31.50/$31.75/ $32/$32.50.
It is good to buy on dips around $30 with SL at around $29.69 and TP at $32.50.
