Gold market under fresh buying; Support seen at 31301
NCDEX Turmeric under short covering
NCDEX Mustard Seed under fresh selling; Support Seen at 4140
MCX Crude Palm Oil under long liquidation
NCDEX Ref. Soya Oil under fresh selling; Resistance seen at 757
Technically Silver market is under fresh selling as market has witnessed gain in open interest by 3.32% to settled at 25147 while prices down 136 rupees.
Now MCX Silver is getting support at 38305 and below same could see a test of 38124 levels and resistance is now likely to be seen at 38698, a move above could see prices testing 38910.
Silver on MCX settled down 0.35% at 38485 as U.S. Treasury yields surged, with further bearish influence from a hawkish outlook for interest rates.
The Fed increased interest rates last month for the third time this year and is widely expected to hike again in December, with no suggestion its tightening policy will cease any time soon. The euro and pound rose underpinned by optimism for a Brexit deal, while the dollar lost ground against a basket of currencies even as US bond yields hovered at multi-year peaks.
The euro’s gains were limited by worries about the sustainability of Italy’s public finances, though Italian Economy Minister Giovanni Tria reiterated on Wednesday that the government would “do everything in its power to regain the confidence of financial markets”.
US producer prices increased 0.2% in September, reversing an unexpected decline of 0.1% in August. Higher prices of services prices offset a dip in prices for goods. In the 12 months through September, the producer price index rose 2.6%, slightly less than the expected 2.7%.
Prices of goods fell for the first time since May, 2017, with a dip of 0.8% in energy and a decline of 0.6% in food. Excluding food and energy, prices of goods rose 0.2%.US wholesale inventories jumped by 1% in August after they gained 0.6% in July.
Trading Ideas:
–Silver trading range for the day is 38124-38910.
–Silver prices eased as U.S. Treasury yields surged, with further bearish influence from a hawkish outlook for interest rates.
–However, downside seen limited benefited from an increase in risk-aversion after the IMF downgraded its outlook for the U.S., China, the euro zone and the UK
–U.S. President Donald Trump felt the Federal Reserve is hiking rates too fast received some focus.
Courtesy: Kedia Commodities
Source: Commodityonline.com
