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Wednesday, March 22, 2023

MCX Silver may trade in a range for the day is 37958-38776

Mentha Oil market under long liquidation; Resistance seen at 1537.5

Aluminium market under fresh buying; Support seen at 138.3

Nickel market under short covering; Support seen at 918

MCX Zinc likely to trade between 169.1-187.5 levels

MCX Copper likely to trade in a range between 411.6-426

Technically MCX Silver is getting support at 38198 and below same could see a test of 37958 levels and resistance is now likely to be seen at 38607, a move above could see prices testing 38776.

Silver recovered from some of its losses as the dollar treated from near 52-week highs, pressured by data showing a wobble in the U.S. housing market. Expectations for further rate hikes were strengthened, when Powell said “the best way forward” is to continue raising rates, as the job market has strengthened and inflation has met the Fed’s 2% target.

Manufacturers in every one of the Federal Reserve’s 12 districts worried about the impact of tariffs, a Federal Reserve report said, even as the U.S. economy continued to expand at a moderate to modest pace. 

Housing starts tumbled 12.3% to a seasonally adjusted annual rate of 1.173 million units last month, the Commerce Department said. The report also highlighted a 2.2% decline in building permits to a rate of 1.273 million units. That was the lowest level since September 2017.

Yet investors continued to expect the retreat in greenback would be short-lived as Federal Reserve Chairman Jay Powell’s testimony before the House Financial Services Committee Wednesday did little to dent investor optimism for further rate hikes.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was about flat near 94.75, after trading as high as 95.18 intraday.

The threat of escalation in the U.S.-China trade war, meanwhile, had muted impact on metals as the downtick in the dollar dominated direction. China’s Ministry of Commerce warned Wednesday of further countermeasures in response to U.S. steel and aluminum tariffs. The US jobless claims for the week ended July 14 will be one of the key factors to watch today.

Trading Ideas:
–Silver trading range for the day is 37958-38776.
–Silver recovered from some of its losses as the dollar treated from near 52-week highs, pressured by data showing a wobble in the U.S. housing market.
–Fed’s George said that uncertainty over U.S. trade policy could slow the economy, even if the recently imposed tariffs in and of themselves are too small to have a big impact.
–Fed’s George called trade policy a “significant” downside risk to her outlook for economic growth, even as tax cuts and other fiscal policy is an upside risk.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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