Silver jumped more than $2 as Chinese fresh stimulus increased the demand for metals. It hit a high of $32.25 and is currently trading around $31.77.
Chinese fresh stimulus-
The People’s Bank of China (PBOC) cut Reserve Requirement Ratio (RRR) by 50 bpbs and lowered the seven-day repo rate to 1.5% from 1.7%.
Markets eye New home sales data for further direction.
Gold-silver ratio-
Gold/Silver ratio-83.57. The gold-silver ratio declined from 86.10 to 82.57 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 $31.70 and a break below the target of $31.25/$30.79/$30.40. On the higher side, immediate resistance is around $32.50 and any breach above targets is $35.
It is good to buy on dips around $31.20-25 with SL at around $30.35 and TP at $35.
