Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 9 June 2014

Silver Silver settled down -0.71% at 39997 as after data revealed the U.S. economy saw an uptick in new job creation in May. U.S. employment report for May showed a slightly higher than expected rise of 217,000 in non-farm payrolls. The key in the report was forecast to rise by 210,000. A new and aggressive ECB monetary policy stimulus package announced Thursday and dovish corresponding remarks from ECB president Mario Draghi were deemed stock market and European bond market bullish. Worries about stagnant EU economic growth and deflationary price pressures forced the hand of the central bank. The ECB move on Thursday has bolstered the notions of some in the market place that the U.S. Federal Reserve may be forced to back off its plan of “tapering” its QE. It seems incongruous in this age of integrated world economies and markets to have the EU stimulating its monetary policy, while at the same time the Fed is reeling in its monetary easing. On Thursday, the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 31 increased by 8k to 312k from the previous week’s revised total of 304k. The report came a day after payroll processing firm ADP said non-farm private employment rose by 179,000 in May. Silver traders and investors have apparently reckoned their metal’s prices had fallen too far during the recent sell off and the market deserves at least a short-covering bounce. Technically market is under fresh selling as market has witnessed gain in open interest by 3.69% to settled at 11309, now Silver is getting support at 39750 and below same could see a test of 39504 level, And resistance is now likely to be seen at 40320, a move above could see prices testing 40644.