Silver yesterday jumped by almost +1.68% to settled at 53207 tracking clues from basemetal and getting support from weakness in the dollar and concerns over a possible Greek debt default boosted the appeal of the bullion.
Meanwhile, the threat of a default by Greece continued, as talks aimed at negotiating a restructuring of the country’s debts remained deadlocked, amid disagreements over a bond swap with private creditors.
Without the swap, debt-stricken Greece is unlikely to secure a second financial bailout, raising fears over a possible disorderly Greek default in March, when massive bond payments are due.
India hiked its Silver import duty doubled the tax on silver seeks to increase revenues, sending futures prices higher and hitting shares of jewellers.
India changed the import duty on silver to 6 percent of value from 1,500/kg, the government said in a statement.
Prices were boosted after data showed that China’s economy expanded at an annualized rate of 8.9% in the Q4, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
While the data was better than expected, the nation’s economy grew at the slowest pace in more than two years and expanded less than 9% for the first time since mid-2009, fuelling speculation that Beijing was likely to ease monetary policy to stimulate growth.
Now technically market is trading in the range as RSI for 18days is currently indicating 48.69, where as 50DMA is at 54207 and Silver is trading below the same and getting support at 52441 and below could see a test of 51676 level, And resistance is now likely to be seen at 53923, a move above could see prices testing 54640.
Trading Ideas:
Silver trading range is 51676-54640.
Silver ended up as weakness in the dollar and concerns over a possible Greek debt default boosted.
Silver import duty doubled to 3,000 rupees/kg -BBA
Without the swap, debt-stricken Greece is unlikely to secure a second financial bailout
Courtesy: Kedia Commodities
Looking for Agri Research? Visit research.commodityonline.com
