MCX Silver under long liquidation; Resistance seen at 44132

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Technically Silver market is under long liquidation as market has witnessed drop in by 2.46% to settled at 12534 while prices down 255 rupees.

Now MCX Silver is getting support at 43516 and below same could see a test of 43207 level, and resistance is now likely to be seen at 44132, a move above could see prices testing 44439. 

Silver on MCX settled down 0.58% at 43824 as stocks and the dollar firmed, but fears of a slowing global economy and lack of clarity on the U.S.-China trade war kept downside limited. had vowed to counter the latest tariffs on Chinese goods but called on Washington to meet it halfway on a potential deal.

Data showing American consumers continued to splurge in came as a relief to investors after the U.S. bond market sounded alarms of a recession. This week’s inversion in the U.S. Treasury yield curve, which has historically preceded several past U.S. recessions, has stoked fresh worries about the economic impact of the Sino-U.S. trade war.

China vowed to counter the latest U.S. tariffs on $300 billion of Chinese goods, but U.S. President Donald Trump said any pact would have to be on America’s terms, suggesting a resolution to the trade war remains elusive. Trump, who is seeking re-election in 2020 and had made the economy and his tough stance on China a key part of his 2016 campaign for the White House, said any agreement must meet U.S. demands.

More protests are also expected in over the weekend, which could become a new geopolitical flashpoint and further complicate the U.S.-China trade war. The U.S. yield curve remains inverted for the second day running today, triggering an extensive flight to safety. The yield curve has inverted before each recession in the past half-decade.

Trading Ideas:
–Silver trading range for the day is 43207-44439.
–Silver prices dropped as stocks and the dollar firmed, but fears of a slowing global economy and lack of clarity on the U.S.-China trade war kept downside limited.
–Data showing American consumers continued to splurge in July came as a relief to investors.
–China vowed to counter the latest U.S. tariffs on $300 billion of Chinese goods.

Courtesy: Kedia Commodities

Source: Commodityonline.com