MCX Nickel expected to trade between 765.3-805.7
MCX Aluminium under long liquidation
MCX Mentha Oil under fresh selling; Resistance seen at 1363.6
Zinc market under fresh selling; Support seen at 182.4
Copper market under short covering; Support seen at 438.3
Technically now Silver is getting support at 37923 and below same could see a test of 37793 levels and resistance is now likely to be seen at 38240, a move above could see prices testing 38427.
Silver on MCX settled down 0.79% at 38054 as the U.S. dollar rose in anticipation of a Federal Reserve rate hike next week. The dollar rose to a 19-month high after data showed U.S. consumer spending appeared to gather momentum while industrial production rebounded in November.
The European Central Bank said that it will end its bond purchasing program at the end of December. In winding up the program, the ECB plans to reinvest cash from maturing bonds for an extended period beyond its next interest rate hike.
The ECB also left benchmark interest rates unchanged. In his remarks to reporters in Frankfurt, ECB President Mario Draghi said that 2018 growth in the euro area was expected to be 1.9% rather than the 2% forecast in September.
“The risks surrounding the euro area growth outlook can still be assessed as broadly balanced. However, the balance of risk is moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility,” Draghi said.
The Fed is expected to increase rates by 25 basis points at its next meeting on Wednesday, its fourth rate hike this year. Dollar gains are likely to be short lived however, as the central bank is expected to slow down its pace of rate hikes in 2019. A mix of inflation data and dovish comments from Fed policymakers has investors uncertain about how many rate hikes there will be next year.
Trading Ideas:
–Silver trading range for the day is 37793-38427.
–Silver dropped as the U.S. dollar rose in anticipation of a Federal Reserve rate hike next week.
–The dollar rose after data showed U.S. consumer spending appeared to gather momentum while industrial production rebounded in November.
–The European Central Bank said that it will end its bond purchasing program at the end of December.
Courtesy: Kedia Commodities
Source: Commodityonline.com
