Silver holds above $30.50 despite strong US dollar. It hit a low of $30.12 and is currently trading around $30.58
Industrial commodities such as Silver, copper plunged sharply after China’s and US economic slowdown. The upbeat US labor data pushed US dollar index higher near the 103 level as probability of a 50 bpbs rate cut by the Fed in Nov got diminished.
Markets eye US CPI data for further direction.
Gold-silver ratio-
Gold/Silver ratio-85.42. The gold-silver ratio increased from 81 to 86.48 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 and 365 Hull EMA in the 4-hour chart. The near-term support is around $30 and a break below the target of $29.60/$28.93/$28. On the higher side, immediate resistance is around $30.80, and any breach above targets $31.25/$31.75/$32.35/$32.75/$33.
It is good to buy on dips around $30.40-45 with SL around $29.70 for a TP of $33.
