Technically Silver market is under fresh selling as market has witnessed gain in open interest by 36.73% to settled at 15941 while prices down 2078 rupees.
Now MCX Silver is getting support at 57501 and below same could see a test of 56617 levels, and resistance is now likely to be seen at 59949, a move above could see prices testing 61513.
Silver yesterday settled down by 3.44% at 58386 as the dollar rose and on growing confidence that the U.S. Federal Reserve would soon begin winding down its economic support measures.
The Federal Reserve’s massive asset purchases helped to stabilize markets at the start of the pandemic but it will “soon” be time to start reducing them, Philadelphia Fed Bank President Patrick Harker said.
“I am in the camp that believes it will soon be time to begin slowly and methodically frankly, boringly tapering our $120 billion in monthly purchases of Treasury bills and mortgage-backed securities,” Harker said in remarks prepared for a virtual event.
Harker said he expects the U.S. economy to grow by about 6.5% in 2021 and then for growth to “moderate” to about 3.5% in 2022. The Fed official said he expects inflation to be around 4% for 2021 before it comes down to just over 2% for 2022.
Contracts to buy U.S. previously owned homes rebounded to a seven-month high in August, but higher prices amid tight supply are slowing the housing market momentum.
The National Association of Realtors (NAR) said its Pending Home Sales Index, based on signed contracts, jumped 8.1% last month to 119.5. That was the highest reading since January and followed two straight monthly declines.
Trading Ideas:
–Silver trading range for the day is 56617-61513.
–Silver dropped as the dollar rose and on growing confidence that the U.S. Federal Reserve would soon begin winding down its economic support measures.
–Fed’s Harker says it will soon be time to begin tapering bond purchases.
–Fed Chair Jerome Powell said the U.S. economy was still far from achieving maximum employment, a key component of its requirements for raising interest rates.
Courtesy: Kedia Commodities
Source: Comodity Online
