Technically Silver market is under fresh selling as market has witnessed gain in open interest by 3.2% to settled at 12215 while prices down 391 rupees.
Now MCX Silver is getting support at 60400 and below same could see a test of 60010 levels, and resistance is now likely to be seen at 61100, a move above could see prices testing 61410.
Silver yesterday settled down by 0.64% at 60789 amid fading concerns over China’s Evergrande and as investors largely brushed off concerns over the Fed’s tapering plans.
The Fed said in the announcement of its latest monetary policy decision that a “moderation in the pace of asset purchases may soon be warranted” if progress towards its dual goals continues broadly as expected.
The central bank currently plans to continue its bond purchases at a rate of at least $120 billion per month but is expected to begin scaling back later this year. Fed Chair Jerome Powell indicated the central bank could begin tapering its asset purchases as soon as its next meeting in early November.
A report released by the Labor Department a little while ago showed first-time claims for U.S. unemployment benefits unexpectedly increased for the second straight week in the week ended September 18th.
The Labor Department said initial jobless claims rose to 351,000, an increase of 16,000 from the previous week’s revised level of 335,000. With the uptick, jobless claims climbed further off the pandemic-era low of 312,000 set in the week ended September 4th.
U.S. business activity expanded at its slowest pace in a year in September amid relentless supply constraints and peaking demand, in line with expectations for a sharp slowdown in economic growth in the third quarter.
Trading Ideas:
–Silver trading range for the day is 60010-61410.
–Silver dropped amid fading concerns over China’s Evergrande and as investors largely brushed off concerns over the Fed’s tapering plans.
–Fed Chair Powell indicated the central bank could begin tapering its asset purchases as soon as its next meeting in early November.
–Data showed first-time claims for U.S. unemployment benefits unexpectedly increased for the second straight week.
Courtesy: Kedia Commodities
Source: Comodity Online
