Crude Oil market under short covering; Support seen at 5509
Gold market under short covering; Support seen at 31210
MCX Natural Gas under long liquidation
MCX Copper likely to move in a range of 451.9-469.3
MCX Zinc may trade between 195.9-207.7 levels
Technically Silver market is under short covering as market has witnessed drop in open interest by 4.37% to settled at 24338 while prices up 163 rupees.
Now MCX Silver is getting support at 38460 and below same could see a test of 38298 levels and resistance is now likely to be seen at 38786, a move above could see prices testing 38950.
Silver on MCX settled up 0.42% at 38621 drawing some safe-haven bids from risk-averse investors amid worries over a potential slowdown in China’s economic growth.
Prices also seen supported as dollar slipped against the yen on simmering anxiety about higher U.S. bond yields, the Sino-U.S. trade war and political turmoil in Europe. 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.
U.S. inflation expectations for both one and three years into the future were unchanged last month, according to a Federal Reserve Bank of New York survey. Prices also benefited from an increase in risk-aversion after the International Monetary Fund cut its global growth forecast, warning that trade conflicts are starting to have a serious impact on the global economy.
The IMF downgraded its outlook for the U.S., China, the euro zone and the UK, saying it now expects the global economy to expand by just 3.7% in 2018 and 2019, down from 3.9% before.
German exports unexpectedly fell in August, data showed on Tuesday, in a fresh sign that manufacturers in Europe’s largest economy shifted into a lower gear over the summer months.
The Federal Statistics Office said that seasonally adjusted exports edged down by 0.1% on the month, missing a forecast of a gain of 0.4%. Imports, expected to fall 0.1%, dropped by 2.7%.
Trading Ideas:
–Silver trading range for the day is 38298-38950.
–Silver gained drawing some safe-haven bids from risk-averse investors amid worries over a potential slowdown in China’s economic growth.
–Prices also seen supported as dollar slipped against the yen on simmering anxiety about higher U.S. bond yields, the Sino-U.S. trade war and political turmoil in Europe.
–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.
Courtesy: Kedia Commodities
Source: Commodityonline.com
