Silver lost its shine on strong US treasury yields. It hit a low of $30.99 and is currently trading around $31.23.
The US 10-year bond yield surged past 4% for the first time since Aug as a strong US labor market would halt the Fed’s aggressive policy actions. The absence on new stimulus from the National Development and Reform Commission (NDRC) meeting today to boost Chinese economy also putting pressure on industrial metals like silver.
Gold-silver ratio-
Gold/Silver ratio-84.49. The gold-silver ratio increased from 81 to 84.80 shows that gold outperformed Silver in the past few days. The ratio is well above the historical average of 52. It is good to buy silver compared to gold.
Major trend reversal level -$33
It trades below 34, 55- EMA, and above 200 EMA in the 4-hour chart. The near-term support is around $30.80 and a break below the target of $30.35/$30/$29.60. On the higher side, immediate resistance is around $32 and any breach above targets $32.35/$32.75/$33.
It is good to sell on rallies around $31.50-52 with SL around $32 for a TP $30.40/$30.
