Silver Under Pressure: Can China's Stimulus Spark a Recovery?

Silver showed a minor pullback on the Chinese stimulus package. It reached a low of $30.83 and is currently trading around $31.53.The short-term trend remains positive as long as support at 30 holds.

China has announced a $1.4 trillion stimulus package to help revive its economy and tackle local government debt. This includes 6 trillion yuan for restructuring debts, allowing regional governments to maintain essential services. The stimulus aims to support economic growth, particularly after a downturn in the real estate market. With fears of high tariffs from the U.S. under Trump, China is acting to strengthen its economy. However, experts worry these measures might only delay addressing deeper issues like high debt and the need for structural reforms.

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

The gold-silver ratio is at 85.55, 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 $31.25. Silver is currently below  key moving averages, with near-term support at $30.70. If it drops below this, it could target $30/$29.60. On the upside, immediate resistance is at $31.25, and breaking this could lead to targets of $31.75/$32.20/$32.75/$33/$33.60/$34/$34.50/$34.50/$34.73.

It may be a good strategy to sell on rallies around $31.50-55, with a stop-loss at $32.20 and a target price of $29.65.