21.2 C
New York
Wednesday, August 17, 2022

Silver market under short covering; Support seen at 36924

Aluminium market under short covering; Support seen at 146.2

Nickel market under fresh selling; Resistance seen at 896.6

MCX Zinc under fresh selling; Support seen at 172.8

MCX Cotton market under short covering; Support seen at 22736.6

MCX Cardamom under fresh buying; Support Seen at 1438.4

Technically Silver market is under short covering as market has witnessed drop in open interest by 0.7% to settled at 27528.

Now MCX Silver is getting support at 36924 and below same could see a test of 36680 levels and resistance is now likely to be seen at 37396, a move above could see prices testing 37624.

Silver remained in range pressured by a stronger dollar and signs the U.S.-China trade war is set to intensify. Traders worried the next chapter in the U.S.-China trade war could be the most destructive yet. U.S. President Donald Trump signaled a willingness to slap additional tariffs on goods from China “very soon.”

Trump warned that he could impose levies on $267 billion worth of imported goods from China. This would add to the $200 billion in goods already targeted. The dollar surged on upbeat U.S. labor market data showing better-than-expected jobs and wage growth, indicating that the U.S. economy would be able to deal with a faster pace of Federal Reserve rate hikes.

The U.S. economy added 201,000 jobs in August, above forecasts for 191,000 new jobs, while the unemployment rate unexpectedly rose to 3.9%, the Labor Department said. The Federal Reserve should keep raising U.S. interest rates in light of Friday’s strong jobs report, Dallas Fed President Robert Kaplan said.

“I believe in light of economic performance we ought to be moving toward neutral…that tells me over the next nine to 12 months we ought to be raising the fed funds rate probably at least three more times, maybe three or four times,” Kaplan said.

The Federal Reserve will likely have to raise interest rates past the neutral rate to keep the economy on a sustainable growth path and inflation around target, according to Chicago Federal Reserve Bank President Charles Evans.  

Trading Ideas:
–Silver trading range for the day is 36680-37624.
–Silver remained in range pressured by a stronger dollar and signs the U.S.-China trade war is set to intensify.
–Traders worried the next chapter in the U.S.-China trade war could be the most destructive yet.
–The U.S. economy added 201,000 jobs in August, while the unemployment rate unexpectedly rose to 3.9%, the Labor Department said.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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