Technically Silver market is under short covering as market has witnessed drop in open interest by 7.9% to settled at 12225 while prices up 558 rupees.
Now MCX Silver is getting support at 61316 and below same could see a test of 60805 levels, and resistance is now likely to be seen at 62189, a move above could see prices testing 62551.
Silver yesterday settled up by 0.91% at 61828 amid investor anxiety over Omicron’s impact on the global economy.
The dollar index steadied and U.S. Treasury yields rose amid expectations that the Federal Reserve could tighten policy more aggressively to tame inflation. Comments by Fed officials suggest that the U.S. central bank is likely to decide to double the pace of its taper to $30 billion a month at its December meeting.
Concerns eased slightly around the Omicron Covid-19 variant. Experts said the new variant, with more than 30 mutations on its spike protein, may not be as dangerous as the Delta and Alpha and other variants of coronavirus.
British drug maker GSK announced that its antibody-based Covid-19 therapy, developed in collaboration with Vir Biotechnology in the United States, is effective against all mutations of Omicron.
Chinese Premier Li Keqiang said last week that Beijing would continue to implement a prudent monetary policy and would reduce the reserve requirement ratio as required.
The Chinese authorities would increase support for the real economy, especially for small and medium-sized companies, to support its operations in a stable way, he added. Meanwhile, a mixed U.S. jobs report released last week did little to shake market expectations of a more aggressive tightening by the Federal Reserve.
Trading Ideas:
–Silver trading range for the day is 60805-62551.
–Silver remained supported amid investor anxiety over Omicron’s impact on the global economy.
–The dollar index steadied and U.S. Treasury yields rose amid expectations that the Federal Reserve could tighten policy more aggressively to tame inflation.
–Comments by Fed officials suggest that the U.S. central bank is likely to decide to double the pace of its taper to $30 billion a month at its December meeting.
Courtesy: Kedia Commodities
Source: Comodity Online
