Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 22 July 2014

Silver Silver settled up 0.54% at 45174 tracking gains from Gold futures which ended higher, on its safe haven appeal with investors shunning riskier assets amid mounting worries over developments in Ukraine, Israel and the Middle East. Investor focus remained on the developments in eastern Ukraine and Gaza, with little or no major U. S. economic data, although several key reports are due later this week. Silver also found some support on renewed concerns over further sanctions against Russia after a passenger plane was shot down near the Ukraine-Russia border last Thursday. From the Middle East, news reports indicate the Israeli military to have taken up positions near the Gaza border and killed 10 militants. It is believed that Israel also had some casualties in the fight. Lastweek Silver was feeble as gold futures reversed their trend and moved in the southern direction. The grey metal closed lower more than .5% thus reducing its monthly gain to 5.35. Meanwhile, ETF inventories showed that investors have become more bearishly biased towards silver. Holdings in total known ETFs backed by silver dropped almost 0.4% month-on-month, the only monthly dip among metals in the sector. In the week ahead, the U. S. is to release what will be closely watched data on consumer prices, home sales and manufacturing orders. Data from the CFTC released Friday showed that hedge funds and money managers decreased their bullish bets in gold futures in the week ending July 15. Technically market is under short covering as market has witnessed drop in open interest by -0.35% to settled at 7348 while prices up 243 rupee, now Silver is getting support at 44921 and below same could see a test of 44668 level, And resistance is now likely to be seen at 45481, a move above could see prices testing 45788.