MCX Gold under short covering; Support seen at 32101
MCX Crude Oil under short covering; Support seen at 3628
MCX Natural Gas likely to move in a range of 234.6-272.4
MCX Copper under short covering
MCX Zinc likely to move in a range of 174.2-178.4
Technically Silver market is under short covering as market has witnessed drop in open interest by 0.96% to settled at 17300 while prices up 17 rupees.
Now MCX Silver is getting support at 39430 and below same could see a test of 39291 level, And resistance is now likely to be seen at 39739, a move above could see prices testing 39909.
Silver gained supported by market expectations of fewer interest rate hikes in the year by the U.S. Federal Reserve, while a bounce in Chinese equities stoked interest in riskier assets. Beijing signalled more supportive measures to stabilise a slowing economy, and emphasised that China is seeking a strong start in the first quarter.
The dollar weakened on heightened expectations the Fed will hold off on raising rates this year due to a slowdown in global growth. A US senior official said that the country plans to grant no new waivers to buyers of Iranian oil as it intensifies efforts to eliminate the Iran’s exports of crude, according to report.
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US sanctions have so far limited Iran’s exports to about 1 million barrels a day from 2.7 million before sanctions. China’s December exports fell 4.4% from a year earlier, while imports dipped 7.6%, both the lowest reading since 2016.
This resulted in a trade surplus of $57.1 billion last month, according to data by the State Council on January 14. China’s trade surplus with the US rose 17% on the year to $323.32 billion in 2018.
This exceeded a surplus of $275.8 billion in 2017, the highest on record. Exports to the US rose 11.3% year-on-year in 2018, while imports from the US to China nudged up 0.7% over the same period.
Trading Ideas:
–Silver trading range for the day is 39291-39909.
–Silver gained supported by market expectations of fewer interest rate hikes in the year by the U.S. Federal Reserve.
–Beijing signalled more supportive measures to stabilise a slowing economy, and emphasised that China is seeking a strong start in the first quarter.
–The dollar weakened on heightened expectations the Fed will hold off on raising rates this year due to a slowdown in global growth.
Courtesy: Kedia Commodities
Source: Commodityonline.com
