Commodity Trading Tips for Silver by Kedia Commodity
Silver on MCX settled up 0.59% at 42570 as investors turned their attention to U.S. trade data ahead of President Donald Trump's meeting with Chinese President Xi Jinping. Prices also seen supported as investors parsed through mixed manufacturing data and weaker-than-expected auto sales numbers. The ISM survey of manufacturing-sector activity showed growth slowing, albeit no more than expected. Meanwhile, the Commerce Department said February U.S. construction spending increased 0.8% to its highest level in more than ten years, but it missed expectations of 1% rise. The main focus for markets this week centers on President Donald Trump's first meeting with Chinese counterpart Xi Jinping on Thursday and Friday. Last week, Trump tweeted that the meeting, which is expected to cover differences over trade and North Korea, "will be a very difficult one." Looking ahead, metals traders will be focused on key employment data from the U.S., the nonfarm-payrolls report due out Friday. A survey’s are forecasting that 178,000 jobs were created in March, with the unemployment rate steady at 4.7%.The Federal Reserve, which has resumed its plan to normalize monetary policy from ultralow levels, will look to the jobs report in part to help determine its pace of rate hikes. A more aggressive pace of rate hikes also can erode demand for commodities that don’t offer a yield. And some insight into the Fed’s thinking could come with Wednesday’s release of the central bank’s most-recent policy meeting. Technically market is under fresh buying as market has witnessed gain in open interest by 0.16% to settled at 11735 while prices up 249 rupees, now Silver is getting support at 42380 and below same could see a test of 42191 level, And resistance is now likely to be seen at 42789, a move above could see prices testing 43009.
# Silver trading range for the day is 42191-43009.
# Silver prices gained after the release of mixed economic data while a softer dollar limited selling pressure in the metal.
# Prices also seen supported benefiting from political uncertainty in Europe, after the UK triggered Article 50 to formally kick off the Brexit process.
# Holdings at ishares silver trust dropped by 0.32% i.e. 32.39 tonnes to 10241.90 tonnes from 10274.29 tonnes.