Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 25 July 2014

Silver Silver settled down -2.54% at 43786 hit a one-month low on Thursday after robust economic data from the United States, China and the euro zone deterred investors from safe-haven assets, even as tensions simmered in the Middle East and Ukraine. Silver dropped tracking fall in the prices for the yellow metal fell 1 percent to below $1,300 an ounce as the dollar and stock markets rose on surprisingly low weekly jobless claims and robust corporate earnings out of the United States. Data from Europe showed the services sector in the 18-member euro zone performing better than any forecast. All that diverted investor attention from the clashes in Gaza between Hamas and Israel, as well as the tensions in the Crimean region after the sanctions on Russia and the downing of a Malaysian passenger jet, that sent bullion rallying last week. The dollar reached a near one-week high against the yen and was up 0.1 percent against a basket of main currencies after data showed the number of Americans filing new claims for unemployment benefits in the latest week fell to the lowest level since 2006. Strong employment reports out of the United States over the past month have stoked speculation of an early interest rate increase. Higher rates could encourage investors to switch to assets that, unlike bullion, pay interest. Other data showed contracts to buy previously-owned U. S. homes hitting an eight-month high, the latest indication that housing is pulling out of a recent soft patch. Technically market is under fresh selling as market has witnessed gain in open interest by 8.6% to settled at 8281, now Silver is getting support at 43360 and below same could see a test of 42933 level, And resistance is now likely to be seen at 44582, a move above could see prices testing 45377.