Technically Silver market is under fresh selling as market has witnessed gain in open interest by 14.22% to settled at 11179 while prices down 1568 rupees.
Now MCX Silver is getting support at 62603 and below same could see a test of 61984 levels, and resistance is now likely to be seen at 64310, a move above could see prices testing 65398.
Silver yesterday settled down by 2.42% at 63223 amid rising expectations for earlier US interest rate hikes after the latest inflation data rose faster than expected.
The headline inflation jumped 4.4% YoY while the Fed-preferred core inflation increased 3.6% YoY in September, challenging the Federal Reserve’s “transitory” narrative.With wages flashing inflation signals and economic growth facing mounting headwinds,
The Fed may try to maintain a balance between containing inflation and giving the economy as much time as possible to restore the jobs lost since the pandemic.The Bank of England’s meeting takes place on Thursday, with think-tanks divided on which way the rate decision would go.
Earlier today, the Reserve Bank of Australia kept the nation’s cash rate at the record low 0.1 percent for the 12th month in a row, but dumped one of its key stimulus measures, known as “yield curve control”, signaling that borrowing costs may have to rise sooner than expected.
Euro zone manufacturing activity remained strong last month but was curtailed by supply chain bottlenecks and logistical problems which sent input costs soaring, a survey showed.
Ongoing disruptions caused by the coronavirus pandemic, alongside a shortage of heavy goods vehicle drivers, has caused product shortages and left factories struggling to get the raw materials they need.
Trading Ideas:
–Silver trading range for the day is 61984-65398.
–Silver prices dropped amid rising expectations for earlier US interest rate hikes after the latest inflation data rose faster than expected.
–Markets will watch closely the Fed’s language on inflation and the timing of the first interest rate hike since December 2018.
–The headline inflation jumped 4.4% YoY while the Fed-preferred core inflation increased 3.6% YoY in September.
Courtesy: Kedia Commodities
Source: Comodity Online
