Zinc market under fresh selling; Support seen at 174.6
MCX Copper may trade in a range between 416.8-428.4
MCX Copper may trade in a range between 416.8-428.4
Natural Gas market under fresh selling; Support seen at 190.5
Crude Oil market under long liquidation; Support seen at 4714
Technically Silver market is under short covering as market has witnessed drop in open interest by 0.5% to settled at 18670 while prices up 45 rupees.
Now Silver is getting support at 39164 and below same could see a test of 38992 levels and resistance is now likely to be seen at 39469, a move above could see prices testing 39602.
Silver on MCX settled up 0.11% at 39335 tracking Comex Silver prices which traded in the range while prices rose 16 cents to settle at $15.977, a day after marking its lowest most-active contract finish year to date snapping two sessions of declines amid worries over the intensifying trade war between the United States and China.
An escalation of tensions between the U.S. and its trading partners across the globe was widely viewed as jolting higher the buck, which has been seen as least vulnerable to the negative impact of tariff disputes.
President Donald Trump has proposed 10% tariffs on $200 billion in Chinese imports, coming a week after the global superpowers placed equal tariffs of 25% on some $34 billion one another’s imports. The move is seen as deepening the rift with Beijing and sending a message to other trading partners that the U.S. won’t back down in a trade fight.
Meanwhile, the dollar rose to a six-month high against the yen and steadied against other major peers on Thursday after U.S. inflation data reaffirmed expectations that the Federal Reserve will hike interest rates two more times this year.
The further escalation of the trade war is mutually destructive given the higher U.S. consumer prices as a result of import tariffs, which in turn could fuel risk of a faster-than-expected Fed rate hike in the foreseeable horizon.
Trading Ideas:
–Silver trading range for the day is 38992-39602.
–Silver prices recovered amid continuing concerns over trade and mixed economic data.
–U.S. consumer prices recorded their largest increase in nearly 6-1/2 years in the year through June.
–The European Commission cut its forecasts for the euro zone’s economic growth this year.
Courtesy: Kedia Commodities
Source: Commodityonline.com
