Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 28 July 2014

Silver Silver settled up 1.13% at 44281 as investors stepped in to scoop up the metal amid conflicts in Ukraine and the Middle East. Israel, meanwhile, rejected calls for a ceasefire and continued its ground offensive in Gaza, which also bolstered bullion prices. The Pentagon said earlier that Russia may be set to provide more sophisticated weapons to Ukrainian separatists, which spooked investors, sending them to bullion in search of safety. The Census Bureau reported that U.S. durable goods orders rose 0.7% in June, beating expectations for a 0.5% gain, after declining of 1% in May, whose figure was revised from a previously estimated 0.9% contraction. Core durable goods orders, which are stripped of transportation items, grew 0.8% in June, beating expectations for a 0.6% gain, after a 0.1% downtick in May, whose figure was revised from a previously estimated flat reading. The data came a day after the U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending July 19 declined by 19,000 to 284,000, defying market forecasts for claims to rise by 5,000. The data primed market expectations for the Federal Reserve to wind down its bond-buying stimulus program around October and raise interest rates in 2015, which would reduce the need for gold for use as a hedge against loose monetary policy. Prices dropped last week mostly on speculation that an improving employment sector in the United States could signal an early rate increase by the Federal Reserve. Technically market is under short covering as market has witnessed drop in open interest by -5.05% to settled at 7863, now Silver is getting support at 43991 and below same could see a test of 43702 level, And resistance is now likely to be seen at 44453, a move above could see prices testing 44626.