Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 10 January 2014

Silver Silver settled up 0.58% at 44124 little changed and recovered in the late session after dropping in the past two sessions, as strong U. S. jobs data took the sheen off the metal's safe-haven appeal while investors waited for further clues on the strength of the world's largest economy. Markets were also digesting minutes of the Federal Reserve policy meeting released on Wednesday to gauge the U. S. central bank's outlook for the pace of its stimulus tapering this year. The minutes showed many Fed officials wanted to proceed with caution in scaling back its bond-buying programme, but strong U. S. data seemed to indicate that the Fed is likely to continue cutting its stimulus. The Federal Reserve has said it will pay close attention to indicators when deciding the fate of its USD75 billion monthly bond-buying program - Fed bond purchases aim to prop up the economy by suppressing long-term borrowing costs, weakening the dollar as a side effect as long as they remain in effect, thus making gold an attractive hedge. By Thursday, however, the dollar cooled its gains as the rally ended ahead of the Friday release of official U. S. December jobs figures, which gave gold prices room to rise on demand from bottom fishers. Earlier Thursday, the Labor Department said the number of individuals filing for unemployment assistance in the U. S. last week fell by 15,000 to 330,000 from the previous week's revised total of 345,000. Technically market is under short covering as market has witnessed drop in open interest by -3.76% to settled at 10992 while prices up 255 rupee, now Silver is getting support at 43784 and below same could see a test of 43445 level, And resistance is now likely to be seen at 44358, a move above could see prices testing 44593.