MCX Crude Oil under long liquidation; Support seen at 3674
MCX Gold may trade in a range between 31640-32136
NCDEX Turmeric under fresh selling; Resistance seen at 6606
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MCX Crude Palm Oil under long liquidation
Technically Silver market is under long liquidation as market has witnessed drop in open interest by -0.2% to settled at 19779 while prices down 38 rupees.
Now MCX Silver is getting support at 38054 and below same could see a test of 37776 levels and resistance is now likely to be seen at 38635, a move above could see prices testing 38938.
Silver steadied amid weaker U.S. dollar and growing expectations that the Federal Reserve will need to slow its pace of rate hikes next year. The Federal Reserve is widely expected to announce its fourth rate hike of 2018 next week, but investors are beginning to question how many increases it can implement next year.
While policymakers have pointed to three increases in 2019, the market is starting to bet the U.S. central bank may halt its rate hikes altogether next year. Fed policymakers are still widely expected to raise interest rates again at their Dec. 18-19 meeting, but the market focus is on how many rate hikes will follow in 2019.
Interest rate futures implied traders see no more than one rate increase from the Fed in 2019, compared with expectations a month earlier for possibly two rate hikes. Data showed the U.S. trade deficit jumped to a 10-year high in October as soybean exports dropped further and imports of consumer goods rose to a record high, suggesting the Trump administration’s tariff-related measures to shrink the trade gap likely have been ineffective.
U.S. producer prices unexpectedly rose in November as increases in the costs for services offset a sharp decline for energy products, but the overall momentum in wholesale inflation appears to be slowing. The Labor Department said its producer price index for final demand edged up 0.1 percent last month after jumping 0.6 percent in October.
Trading Ideas:
–Silver trading range for the day is 37776-38938.
–Silver gained as prices drew support from a weaker U.S. dollar and growing expectations that the Federal Reserve will need to slow its pace of rate hikes next year.
–Fed is widely expected to announce its fourth rate hike of 2018 next week, but investors are beginning to question how many increases it can implement next year.
–China has agreed to cut tariffs on U.S.-built cars and auto parts to 15 percent from the current 40 percent, a Trump administration official said.
Courtesy: Kedia Commodities
Source: Commodityonline.com
