Technically Silver market is under fresh buying as market has witnessed gain in open interest by 1.33% to settled at 9429 while prices up 643 rupees.
Now MCX Silver is getting support at 64926 and below same could see a test of 64197 levels, and resistance is now likely to be seen at 66568, a move above could see prices testing 67481.
Silver yesterday settled up by 0.99% at 65656 propped by a softer dollar and global inflation concerns. The dollar weakened amid easing concerns over Chinese property market.China Evergrande Group reportedly supplied funds to pay interest on a U.S. dollar bond, helping ease contagion fears.
Euro zone inflation expectations among bond investors hit their highest levels in years, putting additional pressure on the European Central Bank and its insistence on maintaining crisis-era stimulus.
Elsewhere, Atlanta U.S Federal Reserve President Raphael Bostic said he expects high inflation to persist into 2022 and the central bank should raise interest rates by the end of next year.
San Francisco Federal Reserve Bank President Mary Daly said that recent ‘eye-popping’ inflation readings are driven by supply chain breakdowns and will subside as COVID does, and the Fed’s decision not to raise rates in response is the right one.
U.S. business activity increased solidly in October, suggesting economic growth picked up at the start of the fourth quarter as COVID-19 infections subsided, though labor and raw material shortages held back manufacturing.
Data firm IHS Markit said its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, rebounded to a reading of 57.3 in the first half of this month from 55.0 in September.
Trading Ideas:
–Silver trading range for the day is 64197-67481.
–Silver prices rose propped by a softer dollar and global inflation concerns.
–The dollar weakened amid easing concerns over Chinese property market.
–Fed’s Daly that recent ‘eye-popping’ inflation readings are driven by supply chain breakdowns and will subside as COVID does.
Courtesy: Kedia Commodities
Source: Comodity Online
