MCX Nickel under fresh selling; Support seen at 882.3
MCX Aluminium under fresh selling; Resistance seen at 145.6
MCX Menthol Oil under fresh buying; Support seen at 1787.3
Crude Oil market under short covering; Support seen at 4878
MCX Cardamom under long liquidation; Resistance seen at 23090
Technically MCX Silver is getting support at 38466 and below same could see a test of 38318 levels and resistance is now likely to be seen at 38886, a move above could see prices testing 39158.
Silver on MCX settled down 0.57% at 38615 as the US dollar strengthened after the European Central Bank (ECB) kept interest rates unchanged in their October policy meeting. The interest rate on the main refinancing operation, the marginal lending facility, and the deposit facility sit at zero, 0.25% and -0.40% respectively.
The expectation is that these rates will remain at their present levels at least through the summer of 2019. Net asset purchases by the ECB stand at a monthly pace of 15 billion euros until the end of December, when the central bank has said the purchasing will stop.
Federal Reserve Governor Richard Clarida said in earlier remarks that gradual increases to interest rates are appropriate, noting that increased savings and tax cuts constitute burdens on the economy, while adding that the monetary policy remains accommodative at the broadest definition.
US data showed durable goods orders rose 0.8% in September, slowing down sharply from 4.4%, while beating estimates of a 1.3% drop. The goods trade deficit widened to $76 billion from $75.5 billion in August, while wholesale inventories rose 0.3%, in addition to the 1% increase in August. Unemployment claims rose 5 thousand in the week ending October 20 to 215 thousand, almost matching estimates of 214 thousand.
Continuing claims fell 5 thousand in the week ending October 13 to 1.636 million, below estimates of 1.644 million. US pending home sales rose 0.5% m/m in September, compared to a 1.9% drop in August. On a yearly basis, sales sharpened their decline to 3.4% from 2.6%, as estimated a 2.6% drop.
Trading Ideas:
–Silver trading range for the day is 38318-39158.
–Silver dropped as the US dollar strengthened after the European Central Bank (ECB) kept interest rates unchanged in their October policy meeting.
–Fed’s Clarida said that gradual increases to interest rates are appropriate, noting that increased savings and tax cuts constitute burdens on the economy.
–Orders to US factories for big-ticket manufactured goods slowed significantly in September.
Courtesy: Kedia Commodities
Source: Commodityonline.com
