Technically Silver market is under long liquidation as market has witnessed drop in open interest by 0.2% to settled at 11659 while prices down 170 rupees.
Now MCX Silver is getting support at 59783 and below same could see a test of 59102 levels, and resistance is now likely to be seen at 60865, a move above could see prices testing 61266.
Silver yesterday settled down by 0.28% at 60464 as the dollar rose as investors bring forward expectations for Fed policy tightening.
Benchmark U.S. Treasury yields gained for a fourth consecutive day to hit a more than three-month peak.Fed Governor Lael Brainard said that labor-market conditions may “soon” warrant a reduction in the pace of the central bank’s bond purchases.
New York Fed President John Williams also noted that moderating bond-buying may soon be warranted. In remarks prepared for delivery to the Senate Banking Committee, Power said that inflation in the U.S. is elevated and could persist in the coming months before dropping back towards the Fed’s long-run 2 percent goal.
U.S. Treasury Secretary Janet Yellen told senators that the United States should return to full employment next year despite headwinds from the coronavirus Delta variant and again urged Congress to quickly lift the federal debt limit.
In prepared remarks to a Senate Banking Committee hearing, Yellen said the recovery from a COVID-19 pandemic-induced recession remains “fragile but rapid.”
“While our economy continues to expand and recapture a substantial share of the jobs lost during 2020, significant challenges from the Delta variant continue to suppress the speed of the recovery and present substantial barriers to a vibrant economy,” Yellen said.
–Silver trading range for the day is 59102-61266.
–Silver dropped as the dollar rose as investors bring forward expectations for Fed policy tightening.
–Benchmark U.S. Treasury yields gained for a fourth consecutive day to hit a more than three-month peak.
–Fed Governor Lael Brainard said that labor-market conditions may “soon” warrant a reduction in the pace of the central bank’s bond purchases.
Courtesy: Kedia Commodities
Source: Comodity Online