Commodity Trading Tips for Silver by KediaCommodity

SilverSilver finished at 54194 as support seen as the euro firmed, US and European shares fell and the US consumer price report supported the view that the Fed has leeway to keep up its monetary easing. US consumer price data recorded the largest increase in nearly four years in February, as the cost of gasoline surged. Excluding food and energy, however, the gain was only 0.2%, slower than January's 0.3% pace. Despite the benign inflation reading, the dollar skidded from a 7month high against a basket of currencies. The US CPI data affirmed expectations that the Fed will continue its bond-buying program for the foreseeable future. Bullion prices were poised for a second straight week of small gains, with most players sidelined in anticipation of the Fed's policy setting meeting next week. But in recent sessions gold has been pressured by a strong dollar, which has benefited from good news on the US economy, luring foreign buyers into US assets on expectations that US growth is outperforming other major countries. Despite US data showing healthier economic readings than expected all week long, the US central bank was seen as having scope at its March 19-20 gathering to decide it will keep pumping money into the economy to bring down unemployment. Officials at the central bank meet next week to assess the economy and are widely expected to keep purchasing $85 billion in bonds per month to spur even stronger growth. Bernanke has already signaled he believes the costs of inaction are greater than continued stimulus. Still, the strong data series have given gold investors reason to pause ahead of the policy meeting on worries that the Fed may reconsider the need for more QE. Now technically market is getting support at 54166 and below could see a test of 54138 level, And resistance is now likely to be seen at 54216, a move above could see prices testing 54238.

Trading Ideas:

Silver trading range for the day is 54138-54238.

Silver settled flat with most players sidelined in anticipation of the Federal Reserve's policy setting meeting next week.

Officials at the central bank meet next week to assess economy and are widely expected to keep purchasing $85 billion in bonds per month

Holdings at ishares silver trust gained by 30.06 tonnes to settle at 10733.66 tonnes.