Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 6 January 2014

Silver Silver settled up 0.28% at 45475 extended the previous session's gains on Friday, as robust physical demand from China and losses in equities markets bolstered demand for the precious metals on the second trading day of the year. Bernanke said the U. S. economy should continue to improve in 2014, but reiterated that monetary policy will remain "highly accommodative" for as long as needed. However, the broadly stronger U. S. dollar held gold's gains in check. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was last up 0.40% to 81.04. Markets are looking towards a slew of data releases this week, including U. S. nonfarm payrolls and trade numbers, to gauge the strength of the economic recovery and how aggressive the Fed could get with its stimulus tapering. Gold price premiums in India, one of the top buyers of the metal, fell due to lack of demand even as supplies trickled in from a few importers. USD75 billion in asset purchases this year shouldn't be interpreted as a sign that tighter monetary policy is around the corner. "It is important to recognize that the potential signaling aspect of asset purchases depends on the broader economic and policy context. In particular, the [Fed's] decision to modestly reduce the pace of asset purchases at its December meeting did not indicate any diminution of its commitment to maintain a highly accommodative monetary policy for as long as needed," Bernanke said in prepared remarks of a speech he gave earlier Friday. Now Silver is getting support at 45117 and below same could see a test of 44758 level, And resistance is now likely to be seen at 45782, a move above could see prices testing 46088.