Commodity Trading Tips for Silver by KediaCommodity

Ajay Kumar Kedia 3 May 2013

Silver Silver yesterday gained by 2.02% to settled at 44541 after ECB President Mario Draghi said earlier that the monetary authority won't rule out slapping negative interest rates on commercial lenders. The ECB earlier cut interest rates to 0.50% from 0.75%, which came as no surprise to most market participants, though afterwards, Draghi said the ECB may charge banks to hold excess reserves sent the euro dropping and made gold an attractive hedge. Negative interest rates would make gold an attractive commodity, even if investors took positions in the metal in non-interest bearing accounts. Meanwhile in the US the US Department of Labor reported earlier that the number of people filing for initial jobless claims last week fell by 18,000 to 324,000, a five-year low. Separately, official data showed that the US trade deficit narrowed by 11% to USD38.8 billion in March compared to a USD43.6 billion deficit in February, as imports fell sharply. Meanwhile as per the report from Societe Generale, Silver is likely to remain in surplus in excess of 4,000 tons in 2013, although it is likely to be lower than 2012. While the Fed reiterated it would continue to buy $85 billion worth of bonds each month to support a moderately expanding economy that still has too high an unemployment rate. Also China's factory-sector growth eased in April as new export orders fell for the first time this year, suggesting the euro zone recession and sluggish US demand may be risks to China's economic recovery. Now technically market is getting support at 43694 and below could see a test of 42847 level, And resistance is now likely to be seen at 45292, a move above could see prices testing 46043.