Commodity Trading Tips for Silver by Kedia Commodity

Silver on MCX settled up 1.3% at 41911 rallied on political risk as U.S. trade policies came into focus anew and investors were cautious ahead of the latest Fed views on rates due this week. Silver prices outpacing gold prices once again as world stock markets held flat amid headlines that new US president Donald Trump's chief trade negotiator blames Germany for "exploiting" the weak Euro to boost its exports, fuelling expectations that the celebrity real-estate tycoon will formally end the United States’ so-called "strong Dollar policy" of the last 25 years. A weaker dollar supported bullion, though traders were also eyeing a two-day Federal Reserve meeting starting later in the day, hoping for clues on the outlook for U.S. interest rates. Meanwhile data from the European statistics office on Tuesday showed that euro zone inflation jumped by more than expected in January, boosted by a surge in energy prices as economic growth accelerated and unemployment fell to its lowest in more than seven years. Meanwhile support also seen after the new data showed that silver bullion trading through London's wholesale market exploded by more than one-third in December to its heaviest level in well over 5 years. Now traders were now looking ahead to the Fed's two-day meeting on monetary policy starting on Tuesday for further clues on the timing of the next U.S. interest rate hike. CB consumer confidence fell more than expected in January to 111.8, lower than the expected 113. Technically market is under short covering getting support at 41550 and below same could see a test of 41190 level, And resistance is now likely to be seen at 42130, a move above could see prices testing 42350.

Trading Ideas:

Silver trading range for the day is 41190-42350.

Silver gained amid uncertainty over the outlook for U.S policy after President Donald Trump introduced immigration curbs that sparked criticism at home and abroad.

Comex Silver hit a 2-1/2 month peak on optimism over Trump's plans to drive economic growth sparked a bounce.

Silver has outperformed gold this month, mainly helped by gains in base metals, which have prompted funds to take long positions.