Technically Silver market is under short covering as market has witnessed drop in open interest by 30.07% to settled at 11298 while prices up 1943 rupees.
Now MCX Silver is getting support at 60910 and below same could see a test of 59670 levels, and resistance is now likely to be seen at 62832, a move above could see prices testing 63514.
Silver yesterday settled up by 3.23% at 62151 as the dollar depreciated, and inflation threat become more apparent after key central bank meetings.
The Federal Reserve avoided any drastic changes to its monetary policy, doubling the pace of taper to $30 billion a month and paving the way for three interest rate hikes by the end of 2022 as expected.
Elsewhere, the UK became the world’s first major central bank to raise borrowing costs since the coronavirus pandemic hammered the global economy to curb inflation while the ECB announced a reduction in the pace of its asset purchases over the coming quarter, citing the progress on economic recovery and towards its medium-term inflation target.
The ECB announced a reduction in the pace of its asset purchases over the coming quarter, citing the progress on economic recovery and towards its medium-term inflation target.
Meanwhile, the UK became the world’s first major central bank to raise borrowing costs since the coronavirus pandemic hammered the global economy to curb inflation.
Policymakers have raised Bank Rate by 0.15 pp to 0.25%, saying the labor market has continued to tighten, and there are some signs of greater persistence in domestic cost and price pressures. Still, policymakers voiced concerns over the uncertainty surrounding the Omicron variant and its impact on near-term activity.
Trading Ideas:
–Silver trading range for the day is 59670-63514.
–Silver gained as the dollar depreciated, and inflation threat become more apparent after key central bank meetings.
–The Federal Reserve avoided any drastic changes to its monetary policy, doubling the pace of taper to $30 billion a month.
–The UK became the world’s first major central bank to raise borrowing costs since the coronavirus pandemic hammered the global economy to curb.
Courtesy: Kedia Commodities
Source: Comodity Online