FxWirePro- Silver Daily Outlook

Silver trades higher on declining US yield. It hit a low of $31.8950 at the time of writing and is currently trading around $31.867.

US economic data

In October 2024, the Empire State Manufacturing Index fell sharply to -11.9, a substantial decrease from September's level of 11.5. This surprising drop caught analysts off guard, as they had expected a much milder contraction of approximately 3.8.  

US treasury yield-

In recent weeks, there has been a significant decline in U.S. 10-year Treasury yields, indicating changing economic expectations and the impact of monetary policy. As of mid-October 2024, the yield on the 10-year Treasury note stands at approximately 4.02%, having fallen from this week’s peak of 4.14%, with analysts anticipating additional drops in the months ahead.

Gold-silver ratio-

Gold/Silver ratio-84.07. The gold-silver ratio decreased from  86.48 to 84.07 showing that silver outperformed gold in the past few days. A ratio above 80 often suggests that silver may be a more attractive investment compared to gold.

Major trend reversal level -$33

It trades above 34, 55- EMA and above 200 and 365 Hull EMA in the 4-hour chart. The near-term support is around $31.25 and a break below the target of  $30.80/$30.40/$30/$29.60/$28.93/$28. On the higher side, immediate resistance is around $32, and any breach above targets $32.35/$32.75/$33.

It is good to buy on dips around $31.25 with SL around $30.60 for a TP of $33.