Commodity Trading Tips for Silver by KediaCommodity

SilverSilver inched down giving up overnight gains in thin post-Christmas trade and settled at 57472, as some investors sold the metal amid negotiations between U.S. lawmakers to strike a budget deal before the end of the year. With investors keeping a close eye on talks between the White House and Congress to prevent the US economy from plunging into recession next year. Market players remained focused on developments surrounding the fiscal cliff in the US, approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1. President Obama, currently vacationing in Hawaii, plans to return to Washington on Thursday in order to take part in talks to avert the crisis ahead of the year end deadline, the White House said late Tuesday. Both chambers of Congress are also due to return to work on Thursday. Without a deal, the US could fall back into recession and drag much of the world down with it. Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. In a sign that there may be a way through deadlock in Congress, Republican House of Representatives Speaker John Boehner urged the Democrat-controlled Senate to act to pull back from the so-called fiscal cliff and offered to at least consider any bill the upper chamber produced. Now technically market is getting support at 57208 and below could see a test of 56944 level, And resistance is now likely to be seen at 57798, a move above could see prices testing 58124.

Trading Ideas:

Silver trading range for the day is 56944-58124.

Silver dropped with investors keeping a close eye on talks between the White House and Congress

US announced softer-than-expected Richmond Fed Manufacturing Index for December

Market players remained focused on developments surrounding the fiscal cliff in the US