Silver Declines Amid Election Uncertainty: Traders Eye Stimulus from China

Silver pared most of its gains in the past five days due to US election uncertainty. It reached a low of $32.24 and is currently trading around $32.58.The short-term trend remains positive as long as support at $2.18 (200-day EMA) holds.

The National People's Congress (NPC) of China is meeting from November 4 to 8, 2024, to discuss a possible fiscal stimulus package. This meeting coincides with the U.S. presidential election, which could impact China's decisions. Estimates for the stimulus package vary, ranging from 2 trillion yuan (about $280 billion) to 10 trillion yuan (around $1.4 trillion). The package may include special bonds for debt swaps and bank recapitalization.

Markets eye US Fed monetary policy on Nov 7th for further movement.

The gold-silver ratio is at 84.02, indicating that gold has outperformed silver recently. A ratio above 80 might suggest that silver could be a more appealing investment compared to gold.

For trading, the major level to watch is $32.75. Silver is currently below  key moving averages, with near-term support at $32.18. If it drops below this, it could target $31.30/$30.70/$30. On the upside, immediate resistance is at $32.75, and breaking this could lead to targets of $33/$33.60/$34/$34.50/$34.50/$34.73.

It may be a good strategy to buy on dips around $32, with a stop-loss at $31.30 and a target price of $34.70.