Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 23 July 2014

Silver Silver settled down -0.17% at 45097 after data revealed both consumer prices and existing home sales are on the rise in the U.S., which should prompt the Federal Reserve to do away with loose monetary policies that have supported the commodity for years. The Labor Department reported earlier that the U.S. consumer price index rose 2.1% in June, unchanged from the previous month and in line with forecasts, which strengthened the dollar and weakened bullion prices, as the two assets tend to trade inversely with one another. On a month-over-month basis, U.S. consumer prices were up 0.3% after a 0.4% increase in May, also in line with expectations. The data kept expectations firm that the days of loose monetary policies that have supported bullion prices since the Great Recession in the U.S. are coming to an end. Market talk points to the Fed ending its bond-buying program around October and then raising interest rates some time in 2015, though the length of time that will pass between those two policy moves remains up in the air. June's core inflation rate, which excludes food and energy costs, rose by just 0.1% from May and 1.9% on year, slightly below market calls for 0.2% and 2.0% readings, respectively, which illustrated how gasoline was driving the CPI up, though markets viewed the numbers as fundamentally healthy anyway. Elsewhere, the National Association of Realtors reported earlier that existing U.S. home sales rose 2.6% to 5.04 million units in June from 4.91 million in May, beating market forecasts for a 2.0% rise to 4.97 million units. Technically now Silver is getting support at 44788 and below same could see a test of 44478 level, And resistance is now likely to be seen at 45354, a move above could see prices testing 45610.