Silver futures advanced marginally +0.41% to settled at 53428 despite the World Bank cutting global economic growth forecasts and rupee firmness by almost +0.78% driven by robust dollar inflows and a rise in the euro, though dollar demand from oil importers tempered gains.
Weakness in the U.S. dollar worked to lift precious metal prices, Interestingly, gold's correlation with the euro/dollar exchange rate is at its most positive in nearly 2 years.
This means that Gold is more likely to move in synch with the euro than at any other time since January 2010.
The World Bank slashed its global growth forecast by the most in 36 months, explaining that it forecasts the world economy to grow at 2.5% in 2012, down from a June estimate of 3.6%.
The IMF aims to bolster its lending resources after identifying a potential need for USD1trillion in financing for future years.
In Greek debt news, word of a soon to close deal with the nation's private creditors that would provide the creditors cash and securities with a market value of approximately 32 cents per euro of government debt, increased the positive sentiment of the day.
In addition, rating agency Fitch warned that Italy could face a two notch downgrade.
Now technically market is trading in the range as RSI for 18days is currently indicating 51.13, where as 50DMA is at 54103 and Silver is trading below the same and getting support at 53010 and below could see a test of 52593 level, And resistance is now likely to be seen at 53680, a move above could see prices testing 53933.
Trading Ideas:
Silver trading range is 52593-53933.
Silver advanced marginally +0.41% despite the World Bank cutting global economic growth forecasts and rupee firmness.
On top of hopes for greater IMF assistance, Greece appears to be getting closer to working out a restructuring deal.
IMF was considering boosting its lending capacity by as much as $500 billion should troubled European nations need more financing.
Courtesy: Kedia Commodities
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