Short covering seen in MCX Zinc
MCX Nickel under fresh selling; Support seen at 949.9
MCX Gold may trade in a range between 30423-30805
MCX Aluminium under fresh buying; Support seen at 143.3
MCX Mentha Oil under short covering
Technically Silver market is under fresh selling as market has witnessed gain in open interest by 2.33% to settled at 17156 while prices down -115 rupees.
Now MCX Silver is getting support at 39612 and below same could see a test of 39458 levels and resistance is now likely to be seen at 39985, a move above could see prices testing 40204.
Silver prices traded in the range as a mixed U.S. jobs report dampened investor expectations for a faster pace of rate hikes. Data showed the U.S. unemployment rate increased and wages grew less than forecast in June even as the economy created more jobs than expected.
Wage growth is a closely watched signal of potential inflation that could prompt more interest rate hikes by the Federal Reserve. The U.S. economy added 213,000 jobs in June, above forecasts for 200,000 new jobs, while the unemployment rate unexpectedly rose to 4%, and Average hourly earnings grew 0.2%, undershooting forecast for a 0.3% increase.
Investors liquidated bullion to cover margins and sought safe havens in U.S. Treasuries and the dollar amid a looming U.S.-China trade war. Expectations that the U.S. Federal Reserve would increase interest rates twice more this year further pressured prices.
Beijing’s efforts to cut production capacity as part of its pollution fight have countered concerns over U.S. tariffs on $34 billion of Chinese goods that have just begun. The U.S. tariffs took effect as a deadline passed, and China vowed to respond, bringing the world’s two biggest economies even closer towards an all-out trade conflict.
Hedge funds and money managers cut their net long positions in COMEX silver contracts in the week to June 26, U.S. Commodity Futures Trading Commission (CFTC) data showed.
Silver speculators trimmed their net long position by 5,898 contracts to 22,166 contracts, CFTC said.
Trading Ideas:
–Silver trading range for the day is 39458-40204.
–Silver prices traded in the range as a mixed U.S. jobs report dampened investor expectations for a faster pace of rate hikes.
–FOMC: Gradual hikes needed amid ‘very strong’ economy
–FOMC Minutes: Most Fed officials saw intensified risks around trade policy
Courtesy: Kedia Commodities
Source: Commodityonline.com
