MCX Crude Oil under long liquidation; Support seen at 3743
MCX Gold under short covering; Support seen at 34961
NCDEX Chana under short covering; Resistance seen at 4345
Short Covering seen in MCX Cotton
NCDEX Jeera under fresh selling; Support seen at 17980
Technically Silver market is under fresh buying as market has witnessed gain in open interest by 2.26% to settled at 18236.
Now MCX Silver is getting support at 40386 and below same could see a test of 40035 levels, and resistance is now likely to be seen at 40939, a move above could see prices testing 41141.
Silver on MCX settled up 1.4% at 40738 after the IMF said the U.S. currency is overvalued by 6-12% based on near-term economic fundamentals. Meanwhile, San Francisco Fed President Mary Daly indicated that she was still uncertain over whether it was the time to cut interest rates at the end of the month.
In the Fed’s last meeting in June, the central bank said it would act “as appropriate” to sustain the economy. However, data this month showed the U.S. economy may be too strong to justify a rate cut, as consumer spending is stronger-than-expected while unemployment is near a 50-year low.
Despite the strong data, concerns surrounding the Sino-U.S. trade development remained as U.S. President Donald Trump said this week that it is still a long way to go before Washington and Beijing could make a trade deal, while threatening to impose more tariffs on Chinese goods.”The jury is still out in my mind about whether or not the headwinds will be so sufficient to knock the U.S. economy off of its trend pace of growth,” Daly said.
Construction of new houses in the US fell slightly in June and permits sank to the lowest in two years, suggesting that a sluggish US housing market has failed to gain much momentum from lower mortgage rates. Housing starts slipped 0.9% in June to an annual pace of 1.25 million last months, the government said. Permits to build more homes slipped 6.1% to a 1.22 million pace.
–Silver trading range for the day is 40035-41141.
–Silver prices rallied after the IMF said the U.S. currency is overvalued by 6-12% based on near-term economic fundamentals.
–San Francisco Fed President Mary Daly indicated that she was still uncertain over whether it was the time to cut interest rates at the end of the month.
–Construction of new houses in the US fell slightly in June and permits sank to the lowest in two years.
Courtesy: Kedia Commodities