Technically Silver market is under short covering as market has witnessed drop in open interest by 3.21% to settled at 9246 while prices up 1157 rupees.
Now MCX Silver is getting support at 64741 and below same could see a test of 63876 levels, and resistance is now likely to be seen at 66116, a move above could see prices testing 66626.
Silver yesterday settled up by 1.8% at 65607 as long-lasting inflation poses a threat to the global economy. Prices paid by American consumers rose in September by more than expected, marking the sixth consecutive month of hot inflation.
As a consequence, Federal Reserve officials are likely to agree on tapering next month as shown in the latest FOMC minutes. Upside in the metal was capped by elevated Treasury yields prompted by hawkish commentary from Federal Reserve Governor Christopher Waller.
Benchmark 10-year Treasury yields hit five-month peak after Waller said that policymakers may need to adopt “a more aggressive policy response” next year to dampen down price pressures.Waller also said in remarks to the Stanford Institute for Economic Policy Research that the Fed should start cutting back its bond purchases (tapering) in November.
A report released by the Commerce Department showed an unexpected decrease in new U.S. residential construction in the month of September.The Commerce Department said housing starts fell by 1.6 percent to an annual rate of 1.555 million in September from a revised rate of 1.580 million in August.
Trading Ideas:
–Silver trading range for the day is 63876-66626.
–Silver rose as long-lasting inflation poses a threat to the global economy.
–Upside in the metal was capped by elevated Treasury yields prompted by hawkish commentary from Federal Reserve Governor Christopher Waller.
–Fed’s Waller said that policymakers may need to adopt “a more aggressive policy response” next year to dampen down price pressures.
Courtesy: Kedia Commodities
Source: Comodity Online
