Technically Silver market is under fresh selling as market has witnessed gain in open interest by 11.79% to settled at 16156 while prices down 610 rupees.
Now MCX Silver is getting support at 59844 and below same could see a test of 59480 levels, and resistance is now likely to be seen at 60778, a move above could see prices testing 61348.
Silver yesterday settled down by 1% at 60208 amid worries the new omicron variant would drag demand down, adding to already reduced demand from the industrial sector.
A strong dollar and bets the Fed will continue its tightening plans also weighed on the silver market. US consumer prices accelerated to the highest level since 1982 at 6.8% in November, while producer prices grew at the fastest pace in over 13 years at 9.6%.
Markets have been pricing for the Fed to wrap up asset purchases around March and then proceed with one or two rate hikes in 2022.Meanwhile, the greenback remained vulnerable to the fast-spreading omicron variant, as a potential hit to the global economy could cloud the outlook and delay stimulus and rate lift off.
The U.S. Senate approved raising the federal government’s debt limit by $2.5 trillion, to about $31.4 trillion, and sent it to the House of Representatives to pass and avert an unprecedented default.
The 50-49 party-line vote follows a months-long standoff between Democrats and Republicans, with the latter seeking to force President Joe Biden’s party to raise the debt limit on its own from the current $28.9 trillion level, generating fodder for attack ads during the 2022 congressional elections.
Trading Ideas:
–Silver trading range for the day is 59480-61348.
–Silver dropped amid worries the new omicron variant would drag demand down, adding to already reduced demand from the industrial sector.
–U.S. Senate approves boosting debt limit to $31.4 trillion, sends to House.
–Pfizer says COVID – 19 pill near 90% effective in final analysis.
Courtesy: Kedia Commodities
Source: Comodity Online
