Technically Silver market is under short covering as market has witnessed drop in open interest by 17.96% to settled at 13078 while prices up 1231 rupees.
Now MCX Silver is getting support at 58575 and below same could see a test of 57532 levels, and resistance is now likely to be seen at 60236, a move above could see prices testing 60854.
Silver yesterday settled up by 2.11% at 59617 as the number of Americans filing new claims for jobless benefits rose further last week amid another increase in California, but the labor market recovery remains intact, with unemployment rolls steadily shrinking in mid-September.
Still, the third straight weekly increase in jobless claims reported by the Labor Department could raise concerns that slowing economic growth could persist beyond the third quarter.
Economic activity has cooled because of a resurgence in COVID-19 cases, driven by the Delta variant of the coronavirus, and the fading boost from pandemic relief money from the government.
Initial claims for state unemployment benefits rose 11,000 to a seasonally adjusted 362,000 for the week ended Sept. 25. Economic growth in the U.S. accelerated by slightly more than previously estimated in the second quarter, the Commerce Department revealed in revised data.
The Commerce Department said real gross domestic product shot up by 6.7 percent in the second quarter compared to the previously reported 6.6 percent spike. Gains were kept in check by expectations that the U.S. Federal Reserve would soon start to unwind bond purchases. U.S. Senate Majority Leader Chuck Schumer said that Senators have reached a deal to avoid a government shutdown on October 1.
Trading Ideas:
–Silver trading range for the day is 57532-60854.
–Silver prices gained as the number of Americans filing new claims for jobless benefits rose further last week.
–Gains were kept in check by expectations that the U.S. Federal Reserve would soon start to unwind bond purchases. U.S. Senate Majority Leader Economic growth in the U.S. accelerated by slightly more than previously estimated in the second quarter.
–Chuck Schumer said that Senators have reached a deal to avoid a government shutdown on October 1.
Courtesy: Kedia Commodities
Source: Comodity Online
