Commodity Trading Tips for Silver by Kedia Commodity
Silver on MCX settled down -0.03% at 41366 tracking weakness from Comex Silver which dropped to settled at $17.88 a troy ounce extending last week’s slide as a stronger dollar weighed on precious metals. The US dollar index rose to more than three-week highs against a basket of other major currencies. Renewed dollar support late on Friday undermined bullion and defensive support for precious metals was curtailed by relief over the US trade stance during President Trump’s meeting with Chinese President Xi. Silver held steady while support can be seen as growing geopolitical tensions continued to drive safe-haven demand. Top aides to U.S. President Donald Trump differed on Sunday on where U.S. policy on Syria was headed after last week's attack on a Syrian air base, while U.S. Secretary of State Rex Tillerson warned the strikes were a warning to other nations, including North Korea. Meanwhile the U.S. Federal Reserve might in the future avoid raising interest rates at the same time that it begins the process of shrinking its $4.5 trillion bond portfolio, prompting only a "little pause", New York Fed President William Dudley said on Friday. But bullion has been supported by safe-haven demand due to mounting geopolitical tensions. A U.S. Navy strike group will be moving toward the western Pacific Ocean near the Korean peninsula as a show of force, as concerns grow about North Korea's advancing weapons programme. Technically market is getting support at 41092 and below same could see a test of 40818 level, And resistance is now likely to be seen at 41554, a move above could see prices testing 41742.
Silver trading range for the day is 40818-41742.
Silver prices edged lower as the U.S. dollar continued to remain supported by Federal Reserve policy tightening expectations.
Prices will see support as growing geopolitical tensions continued to drive safe-haven demand.
iShares Silver Trust shrink at the fastest pace in at least 3 years, with shareholders liquidating 346 tonnes of the trust's physical silver backing.