Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 22 August 2013

Silver Silver settled up 1.96% at 51446 purely on rupee weakness which plunged to a record low on Wednesday on heavy dollar demand from importers and as traders fretted over mixed signals from the central bank over its efforts to prop up the currency without choking off economic growth. While Silver on COMEX traded in the range with weak sentiments after minutes from a Fed policy meeting failed to ease fears that the US central bank would begin tapering its economic stimulus from next month. The minutes of the Fed's July 30-31 meeting, released on Wednesday, showed that a few officials thought last month it would soon be time to slow the pace of their bond buying "somewhat" but others counseled patience. While US Treasury yields jumped to levels last seen in July 2011 as markets interpreted the minutes to mean the Fed did not completely rule out a scale back from next month. In June, Bernanke said the bank expected to trim stimulus later this year and to halt it by mid-2014, prompting the markets to believe the tapering would begin in September. In US economic news out Wednesday, the National Association of Realtors said existing home sales rose 6.5% in July, rising to the highest level in nearly four year. Homes sold at a seasonally-adjusted rate of 5.39 million units. Any improvement in the US economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months. Technically market is under short covering as market has witnessed drop in open interest by -3.18% to settled at 5601 while prices up 987 rupee, now Silver is getting support at 50375 and below same could see a test of 49305 level, And resistance is now likely to be seen at 52145, a move above could see prices testing 52845.