Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 7 January 2014

Silver Silver settled flat at 45370 while traded in the range and well settled above 45000 mark as support seen from Comex Silver which settled at 20.17 rallied for a fifth day to its highest level in nearly three weeks on Monday, as softer equity markets prompted investors to tap the asset's safe-haven qualities. The metal's rally comes despite a stronger dollar and bullish comments from the Federal Reserve on the U.S. economy, but follows a near 30 percent loss last year. The upswing in prices failed to dent physical purchases in China, the world's biggest bullion consumer, where demand has picked up ahead of the Lunar New Year and trading volumes on the Shanghai Gold Exchange hit an eight-month high on Monday. Silver slumped to the lowest level since June last week but alike gold it managed to recover losses in the following session and finished the week with a 3.73% gain. Silver’s advantage against its more expensive peer remained in the stronger Indian demand after several consecutive increases in import duties on the precious metals. India silver imports more than doubled in the first half of 2013, reaching about 3,000 tonnes compared to 1,900 tonnes in the whole 2013. The dollar took a hit earlier Monday after the ISM said its non-manufacturing purchasing managers' index fell to 53.0 in December from 53.9 in November. Still, silver moved into negative territory amid concerns that economic indicators overall are improving and will continue to prompt the Fed to scale back bond purchases that have supported gold off and on since the 2008 financial crisis. Technically market is getting support at 45022 and below same could see a test of 44674 level, And resistance is now likely to be seen at 45729, a move above could see prices testing 46088.