Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 1 September 2014

Silver Silver settled down -0.52% at 42945 as prices seen under pressure from rallies in equities and the prospect of a U.S. interest rate hike. Pressure also seen as the dollar strengthened after some upbeat economic data from the U.S. showed consumer sentiment in August to have improved unexpectedly, although consumer spending in July dipped. Nonetheless, the decline was limited on concerns over the situation in Ukraine with investors closely monitoring the ongoing geopolitical tensions between Ukraine and Russia. On the economic front, a Thomson Reuters and University of Michigan report showed consumer sentiment in the U.S. to have unexpectedly improved in August, in an upward revision from a preliminary reading. However, in a surprise retreat that complicates the prevailing belief that the U.S. economic situation is improving, consumers spent less in July than in the previous month, statistics issued by the U.S. Commerce Department showed. Personal income rose for the month, though at a slower pace than economists had projected. On a less positive note, the Bureau of Economic Analysis reported that U.S. personal spending fell 0.1% last month, confounding expectations for a 0.2% rise, after an increase of 0.4% in June, though Friday's overall positive data coupled with upbeat reports from earlier this week reminded markets that the days of ultra-loose U.S. monetary policy that have supported gold for years are coming to a close. Technically market is under fresh selling as market has witnessed gain in open interest by 25.41% to settled at 8286 while prices down -226 rupee, now Silver is getting support at 42831 and below same could see a test of 42717 level, And resistance is now likely to be seen at 43128, a move above could see prices testing 43311.