Silver Prices Retreat as Strong U.S. Economic Data Weighs In

Silver prices pulled back due to rising U.S. Treasury yields. It reached a low of $33.09 and is currently trading around $33.19. The short-term trend remains positive as long as support at $31.85 holds.

U.S. consumer spending is strong, with a forecasted increase of 2.4% for 2024, up from 2.2% last year. The economy grew by 3.0% in Q2 2024, with overall GDP growth projected at 2.7% for the year. Retail sales rose by 0.1% in September, and industrial production increased by 0.8%. This positive economic news has reduced demand for safe-haven assets like silver.

The gold-silver ratio is at 79.92, 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 $34.50. Silver is currently above key moving averages, with near-term support at $33. If it drops below this, it could target $32.70, $32.40, or $32. On the upside, immediate resistance is at $34.50, and breaking this could lead to targets of $34.73, $35, or $36.

It may be a good strategy to buy on dips around $33, with a stop-loss at $32 and a target price of $35.