MCX Aluminium under fresh selling; Support seen at 144.8
MCX Nickel under short covering; Resistance seen at 850.5
MCX Zinc under fresh buying; Support seen at 212.7
MCX Copper under fresh selling; Support seen at 418
MCX Natural Gas likely to move in a range of 179.3-187.9
Technically MCX Silver is getting support at 36168 and below same could see a test of 36089 level, And resistance is now likely to be seen at 36338, a move above could see prices testing 36429.
Silver on MCX settled down 0.34% at 36246 as traders cheered a temporary reprieve in U.S.-China trade tensions surrounding Chinese telecommunications giant Huawei. The fall in prices came after the U.S. Commerce Department said overnight that it will temporarily allow Huawei to purchase U.S.-made goods for at least 90 days.
The U.S.-China trade war has been one of the pillars of support for bullion this year as investors used the metal as a safe haven in times of both economic and political troubles. The precious metal was also pressured by the rising U.S.
Dollar, which received some support from data that showed U.S. consumer sentiment jumped to a 15-year high in early May. Hedge funds and money managers increased their net short position in silver in the week to May 14, the U.S. Commodity Futures Trading Commission (CFTC) said.
However, with recent economic data such as jobless claims, consumer sentiment, housing starts and Philadelphia-area manufacturing activity suggesting that the U.S. economy is in good shape, the metal’s uptick was just marginal.
“On the inflation part of our mandate our preferred measure of inflation which is core PCE inflation is only running at 1.6% year-over-year,” Bullard explained.
“This is a concern to me. I do think that this number plus relatively low inflation expectations warrant attention from the FOMC.” “If low inflation turns out to be persistent, I’ll get more aggressive in pushing the FOMC to lower rates in reaction and try to recenter inflation expectations at 2%,” said Bullard.
–Silver trading range for the day is 36089-36429.
–Silver prices dropped as traders cheered a temporary reprieve in U.S.-China trade tensions surrounding Chinese telecommunications giant Huawei.
–The fall in prices came after the U.S. Commerce Department said that it will temporarily allow Huawei to purchase U.S.-made goods for at least 90 days.
–The Fed minutes is likely to provide clues about the central bank’s likely stance on interest rates for the rest of the year.
Courtesy: Kedia Commodities