Zinc market under fresh selling; Support seen at 184.7
MCX Copper may trade in a range between 426.2-454
Natural Gas market under fresh selling; Support seen at 194.1
Fresh Buying seen in MCX Crude Oil; Support seen at 5068
Short covering seen in MCX Cotton
Technically MCX Silver is getting support at 39758 and below same could see a test of 39596 levels and resistance is now likely to be seen at 40024, a move above could see prices testing 40128.
Silver on MCX settled up 0.53% at 39919 helped by a softer U.S. dollar and smoldering trade policy tensions, though the prospect of the Federal Reserve raising interest rates further may limit gains.
The U.S. dollar index fell against a basket of major currencies, while the Chinese yuan rose for a second day with central bank support, after seeing an 11-month low this week.
Trade concerns remained in focus as traders await the July 6 deadline when the U.S. trade tariffs on $34 billion in Chinese goods are due to take effect.?In response, China has announced that it would retaliate with duties on the same value of U.S. products.
China will “absolutely not” fire the first shot in a trade war with the United States and will not be the first to levy tariffs, its finance ministry said. Bank of Japan board member Yutaka Harada warned on Wednesday that raising interest rates quickly would severely damage financial institutions, underscoring market views that the central bank would go slow in exiting crisis-mode stimulus.
Euro zone business growth accelerated in June, offering encouragement to the European Central Bank to tighten policy, but optimism among purchasing managers was at its lowest ebb since late 2016, a survey found.
Investors are now looking to minutes of the June U.S. Federal Reserve meeting due for publication on Thursday and the U.S. non-farm payrolls and unemployment data on Friday for further cues on monetary policy. Markets are pricing in two more Fed interest rate hikes for 2018.
Trading Ideas:
–Silver trading range for the day is 39596-40128.
–Silver prices gained helped by a softer U.S. dollar and smoldering trade policy tensions
–Trade concerns remained in focus as traders await the July 6 deadline when the U.S. trade tariffs on $34 billion in Chinese goods are due to take effect.
–Trading activity is expected to be light however, as the U.S.?markets?are?closed on Wednesday for the Independence Day holiday.
Courtesy: Kedia Commodities
Source: Commodityonline.com
