Commodity Trading Tips for Silver by Kedia Commodity

Ajay Kumar Kedia 2 August 2013

Silver Silver yesterday settled down -0.27% at 41407 as pressure seen from Rupee rebound from intra-day lows as the RBI continued to bolster its currency defence by tightening rules for curbing speculation by foreign investors, and on rumoured central bank intervention. The RBI stipulated that foreign institutional investors would require a mandate from participatory note holders to hedge on their behalf. Also COMEX Silver settled with losses after the Federal Reserve gave no indications on whether it will begin to taper its stimulus program in the near future. Moves in the silver price this year have largely tracked shifting expectations as to whether the US central bank would end its bond-buying program sooner-than-expected. Silver prices struggled for upside traction due to a slightly stronger US dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains. Market players now looked ahead to highly-anticipated data on US nonfarm payrolls due on Friday for indications of how the recovery in the US labor market is progressing. Meanwhile the Commerce Department said that GDP grew at a seasonally adjusted annual rate of 1.7% in the three months to June, beating expectations for growth of 1%. The robust GDP data came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000. Investors have closely been looking out for data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Technically market is getting support at 41139 and below same could see a test of 40870 level, And resistance is now likely to be seen at 41738, a move above could see prices testing 42068.