Commodity Trading Tips for Silver by Kedia Commodity

Ajay Kumar Kedia 12 August 2013

Silver Silver yesterday settled up 0.29% at 42698 tracking gains from COMEX Silver which rose 1.5% to $20.51 an ounce rose on Friday as falling US equities, with bullion notched a second consecutive weekly gain due to uncertainty over when the Fed will reduce its economic stimulus policy. Speculation the central bank could start tapering its $85 billion monthly bond purchases as soon as next month knocked bullion. But there was no consensus among Fed policymakers about the exact timing on when to end the program. On Friday, government data showed US wholesale inventories unexpectedly fell for a second straight month in June, prompting economists to trim their growth estimates. Bullion reversed earlier losses as US equities fell and were set for their worst week since June. The S&P 500 index was off 0.3 percent. Investors found few reasons to buy with equity prices near record levels. Data from the US CFTC show hedge funds, money managers and other professional investors pared their long exposure to gold by 27% to 48,103 options and futures contracts for the week ending August 6. Short exposure to gold was increased by 26% as net long exposure to 18 commodities was reduced 19%, according to the CFTC data. Last week, comments by senior Fed officials, indicated that the US central bank could begin to scale back its asset purchase program as early as next month if the economy continues to pick up. Technically market is getting support at 42631 and below same could see a test of 42563 level, And resistance is now likely to be seen at 42766, a move above could see prices testing 42833.