MCX Gold under long liquidation
MCX Crude Oil under long liquidation; Support seen at 5441
MCX Natural Gas under fresh buying; Resistance seen at 246.3
MCX Copper may move in a range of 449-461.6
MCX Zinc under Fresh buying; Support seen at 194.9
Technically MCX Silver is getting support at 38208 and below same could see a test of 37959 level, And resistance is now likely to be seen at 38903, a move above could see prices testing 39349.
Silver on MCX settled down 2.08% at 38458 as the dollar firmed after China’s central bank eased its domestic policy to support the economy. The dollar reasserted its role as a safe-haven play last week on worries of a eurozone-wide contagion from Italy’s fiscal issues.
But a wind-up in hawkish Federal Reserve language after the recent rate hike bolstered the prospects for the dollar again, allowing it to gain at gold’s expense. The Fed added a quarter point in the final week of September to bring rates to between 2.0% and 2.25% and indicated another increase in December.
Fed Chairman Jerome Powell said last week that rates may rise above an estimated “neutral” setting as the economy continues to grow. China’s central bank said that it would cut the required amount of cash that most banks must hold as reserves, to lower financing costs and spur growth.
Reserve requirement ratios (RRRs), currently at 15.5% for large institutions and 13.5% for smaller banks, would be cut by 100 basis points effective October 15, the People’s Bank of China (PBOC) said. The central will inject 750 billion yuan ($109.2 billion) in cash into the banking system with the cut by releasing 1.2 trillion yuan in liquidity, with 450 billion yuan of that to offset maturing medium-term lending facility (MLF) loans.
Britain said it could not agree a divorce deal with the European Union without a framework pact on future relations, throwing down the gauntlet to the bloc which also says it cannot move on talks until London does.
Trading Ideas:
–Silver trading range for the day is 37959-39349.
–Silver prices inched lower as the dollar firmed after China’s central bank eased its domestic policy to support the economy.
–Federal Reserve Bank of New York President John Williams endorsed the idea that the Fed will raise rates once more this year and three times next year.
–China’s central bank announced a steep cut in the level of cash that banks must hold as reserves, stepping up moves to lower financing costs and spur growth.
Courtesy: Kedia Commodities
Source: Commodityonline.com
