Commodity Trading Tips for Silver by Kedia Commodity

Ajay Kumar Kedia 25 July 2013

Silver Silver yesterday settled down -1.21% at 41346 as traders in the region examined some buoyant U. S. housing data that weighed on prices. Better-than-expected economic indicators in the U. S. strengthen the greenback and bruise prices by fanning expectations that the Federal Reserve will move closer to tapering and eventually ending monetary stimulus measures such as asset purchases. A combination of a sharp rise in the U. S. dollar, tumbling crude oil futures and a rally in U. S. Treasury yields - seen as U. S. short-term interest rates - hit bullion's appeal as a hedge, added to bullion's loss. Gold extended losses throughout the session after data showed new U. S. home sales vaulted to a five-year high in June. Other reports showed that private industry in the euro zone expanded for the first time in more than a year in July, a month when U. S. manufacturing output and hiring grew. Prices have soared in recent years due to loose monetary policies at the Federal Reserve and at other central banks. Fed Chairman Ben Bernanke has stressed that the pace of the bank's bond purchases would depend on economic data. Improving indicators in the U. S. tend to boost expectations that monetary stimulus programs such as the Fed's monthly USD85 billion bond-buying program, which weaken the dollar to spur recovery, will end soon and allow the greenback to rise. Traders in India braced for a fall in supply and higher premiums ahead of festivals, as the central bank's steps to restrict imports are expected to cut supplies for domestic consumption. Technically market is under long liquidation as market has witnessed drop in open interest by -0.37% to settled at 11070 while prices down -508 rupee, now Silver is getting support at 41055 and below same could see a test of 40764 level, And resistance is now likely to be seen at 41863, a move above could see prices testing 42380.