Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 21 January 2014

Silver Silver settled flat above 45024 carrying the last weeks gain as traders continued to speculate over how quickly the Federal Reserve will roll back its stimulus program. Investors continued to watch U.S. data points for clues on the future course of monetary policy and to help assess the timing for a further reduction in the Fed’s bond purchasing program. U.S. housing starts fell 9.8% last month, more than the 8.3% decline forecast by market player. U.S. building permits rose less-than-expected in December, but remained close to November’s five year highs. Separate reports showed that U.S. industrial production rose 0.3% in December, increasing for the fifth consecutive month, while consumer sentiment declined in January. The Fed is scheduled to meet January 28-29 to review the economy and assess policy. Expectations of monetary stimulus tend to benefit gold, as the precious metal is seen as a safe store of value and inflation hedge. Gold and silver prices received an additional boost from news that Deutsche Bank was withdrawing from gold and silver benchmark setting. The decision comes as German regulators investigate possible manipulation of precious metals prices by banks. According to data from the CFTC released Friday, hedge funds and money managers increased their bullish bets in gold and silver futures in week ending January 14. Technically market is under fresh selling as market has witnessed gain in open interest by 1.43% to settled at 9938 while prices down -112 rupee, now Silver is getting support at 44897 and below same could see a test of 44771 level, And resistance is now likely to be seen at 45207, a move above could see prices testing 45391.