Technically Silver market is under short covering as market has witnessed drop in open interest by 6.49% to settled at 13030 while prices up 431 rupees.
Now MCX Silver is getting support at 61253 and below same could see a test of 60924 levels, and resistance is now likely to be seen at 61828, a move above could see prices testing 62074.
Silver yesterday settled up by 0.7% at 61582 as markets prepared for a busy central bank calendar week, headlined by the two-day Federal Reserve meeting on Dec. 14-15.
In economic releases, U.S. reports on producer price inflation, import and export prices, retail sales, housing starts and industrial production are due this week. Concerns about the Omicron Covid-10 variant persist amid rising caseloads in some of the European countries.
The overall risk related to the new variant of concern Omicron remains very high for a number of reasons, the World Health Organization said in a technical brief, referring to the virus’ potential ability to evade immunity provided by antibodies.
The Fed is likely to announce a faster tapering of bond purchases but more pronounced concerns over inflation or an aggressive “dot plot” could roil markets. In Europe, the ECB is expected to confirm its PEPP pandemic support scheme will end in March and maintain a more dovish take on inflation pressure.
In the UK, the BoE will have to contend with surging Omicron infections; uncertainty over the economic impact has already dampened expectations of a rate hike on Thursday. In Japan, the BOJ may decide to phase out some pandemic stimulus programmes in March, while leaving its ultra-easy policy settings intact.
Trading Ideas:
–Silver trading range for the day is 60924-62074.
–Silver prices gained as markets prepared for a busy central bank calendar week, headlined by the two-day Federal Reserve meeting on Dec. 14-15.
–Concerns about the Omicron Covid-10 variant persist amid rising caseloads in some of the European countries.
–The Fed is likely to announce a faster tapering of bond purchases but more pronounced concerns over inflation or an aggressive “dot plot” could roil markets.
Courtesy: Kedia Commodities
Source: Comodity Online
