Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 3 September 2013

Silver Silver settled up 3.28% at 57073 as investors covered short positions. That, along with short-covering in bullion, helped gold pare some of its losses. Prices rallied last week amid indications the US was close to taking military action against Bashar al-Assad's government. Trading volumes were expected to remain light on Monday, with US markets closed for the Labor Day holiday. Silver prices tumbled earlier amid fading expectations for imminent US military action against Syria. President Obama said Saturday that he will seek approval from Congress before ordering a military strike against Syria. A decision is not expected before September 9, when US lawmakers return from their recess. Silver prices surged lastweek as safe-haven buying picked up amid growing speculation the US was moving closer to taking military action against Syria's government. Futures erased losses to turn sharply higher after data showed that China's final HSBC Purchasing Managers Index inched up to a four-month high of 50.1 in August, unchanged from a preliminary reading and up from 47.7 in July. The upbeat data was published one day after a government report showed that China's manufacturing PMI climbed to a 16-month high of 51.0 in August from 50.3 in July. China is the world's second largest silver consumer and manufacturing is a key driver of silver demand as it is used in solar panels and electronics as well as jewelry. Technically market is under fresh buying as market has witnessed gain in open interest by 9.79% to settled at 4564 while prices up 1813 rupee, now Silver is getting support at 55588 and below same could see a test of 54104 level, And resistance is now likely to be seen at 57928, a move above could see prices testing 58784.