Commodity Trading Tips for Silver by Kedia Commodity
Commodity Trading Tips for Silver by Kedia Commodity

Silver on MCX settled up 0.42% at 42326 buoyed by a weaker dollar, after the release of mostly negative economic data while uncertainty over the outcome of the European elections continued to increase demand for the metals. Prices remained steady with global political uncertainty, the upcoming elections in Europe in particular, seen supporting prices of the metal, driving the metal to its best quarter in a year. Prices recovered from a dip earlier in the session, as the dollar slumped to lows, after the latest batch of economic data revealed a slowdown in personal spending and consumer sentiment. The University of Michigan said its consumer sentiment index slipped to 96.9 in March from an initial estimate of 97.6, which was well below forecast of an unchanged reading. The Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.1% against expectations of a 0.2% increase. The precious metal has benefited from a flight to safety in recent months, as investors sought refuge in the yellow metal amid uncertainty over the outcome of European election and growing concerns that President Trump’s promised economic stimulus package may be delayed. Data showing the largest annual increase in U.S. inflation in nearly five years and comments by the president of the New York Federal Reserve meanwhile reinforced expectations of U.S. interest rate hikes this year. A stronger dollar makes bullion more expensive for holders of other currencies, while higher interest rates lead to higher bond yields and dampen demand for non-yielding bullion. Technically now Silver is getting support at 42032 and below same could see a test of 41737 level, And resistance is now likely to be seen at 42491, a move above could see prices testing 42655.

Trading Ideas:

# Silver trading range for the day is 41737-42655.

# Silver prices gained buoyed by a weaker dollar, after the release of mostly negative economic data.

# Prices remained steady with global political uncertainty, the upcoming elections in Europe in particular, seen supporting prices of the metal.

# Holdings at ishares silver trust dropped by 0.17% i.e. 17.68 tonnes to 10274.29 tonnes from 10291.97 tonnes.




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