Crude Oil market under fresh buying; Support seen at 3966
Gold market under long liquidation; Support seen at 31960
MCX Natural Gas under fresh buying; Support seen at 201.5
MCX Copper under fresh buying; Resistance seen at 462.3
MCX Zinc under fresh buying; Support seen at 196.3
Technically Silver market is under fresh selling as market has witnessed gain in open interest by 4.07% to settle at 17131.
Now MCX Silver is getting support at 38266 and below same could see a test of 38079 levels and resistance is now likely to be seen at 38752, a move above could see prices testing 39051.
Silver on MCX settled down -0.63% at 38452 as the U.S. dollar gained amid optimism the U.S. and China could agree on a trade deal in the foreseeable future, and contributed significantly to the yellow metal’s slide.
According to reports from multiple sources, the U.S. and China are in the final stage of negotiations on a long-term trade deal. China is offering to lower tariffs and other restrictions on American products, while the U.S. is considering removing most, if not all, sanctions levied against Chinese products since last year.
It is reported that U.S. President Donald Trump and Chinese President Xi Jinping are planning to meet later this month to finalize the agreement. On the economic front, a report released by the Commerce Department unexpectedly showed a pullback in U.S. construction spending in the month of December.
The report said construction spending fell by 0.6% to an annual rate of $1.293 trillion in December after climbing by 0.8% to a rate of $1.301 trillion in November. The drop surprised economists, who had expected spending to edge up by 0.2%.
The unexpected decrease came as spending on private construction slid by 0.6% to an annual rate of $991.2 billion after surging up by 1.3% to a rate of $997.1 billion in November. The Commerce Department said spending on public construction also dropped by 0.6% to an annual rate of $301.5 billion in December after tumbling by 1% to a rate of $303.5 billion in November.
Trading Ideas:
–Silver trading range for the day is 38079-39051.
–Silver dropped as the U.S. dollar gained amid optimism the U.S. and China could agree on a trade deal in the foreseeable future.
–The greenback gained bolstered by the rise in US bond yields with benchmark 10-year yields hitting month-highs last week.
–The US and China appeared to be close to a deal that would roll back US tariffs on at least $200 billion worth of Chinese imports.
Courtesy: Kedia Commodities
Source: Commodityonline.com
