MCX Gold may trade in a range between 31674-32238
NCDEX Chana under fresh buying; Support seen at 4302
MCX Cotton may trade between 20480-21220 levels
NCDEX Jeera likely to move in a range of 16750-17330
NCDEX Turmeric under fresh selling; Resistance seen at 6680
Technically Silver market is under long liquidation as market has witnessed drop in open interest by 3.15% to settled at 16840 while prices down 236 rupees.
Now MCX Silver is getting support at 39109 and below same could see a test of 38934 levels and resistance is now likely to be seen at 39610, a move above could see prices testing 39936.
Silver on MCX settled down 0.6% at 39285 as investors awaited remarks from Fed Jerome Powell amid expectations that the head of the central bank will reaffirm a pause in policy tightening.
Powell’s last appearance sent stocks soaring as he noted that the Fed could be “patient” on further policy tightening. Markets currently price in that the central bank will be on pause all throughout 2019 and put about a 14% chance that it will actually cut interest rates by the end of the year.
Presidents of four of the 12 Fed regional banks on Wednesday said they wanted greater clarity on the state of the economy before extending the central bank’s rate hike campaign any further, suggesting that the Fed could take months before another increase is undertaken.
St. Louis Fed President James Bullard, considered the most dovish policymaker, even suggested that further tightening could tip the U.S. economy into recession. Minutes from the Fed’s Dec. 18-19 policy meeting revealed that several members said they could afford to be “patient” about the future interest rate hike, citing a list of concerns including volatility in financial markets, slowing global growth and muted inflation pressures.
Investors are also waiting for further news on the Sino-U.S. trade talks, after China’s Commerce Ministry said in a statement that discussions with the U.S. this week were “extensive and detailed,” and that both sides agreed to continue to keep in close contact.
–Silver trading range for the day is 38934-39936.
–Silver pared gains as investors awaited remarks from Fed Jerome Powell amid expectations that the head of the central bank will reaffirm a pause in policy tightening.
–FOMC minutes: Many officials felt Fed could be patient on further hikes.
–Fed’s Rosengren: Possible that Fed may need to cut rates, but that is ‘not his view’
Courtesy: Kedia Commodities