Silver yesterday traded in the tight range and settled flat down by -0.08% at 53387 still trading close to the highest level since mid-December as investors continued to focus on developments surrounding the euro zone’s ongoing sovereign debt crisis.
Greece’s government was due to resume talks with its bond holders later in the day to discuss a voluntary write-down on Greece’s sovereign debt.
Greece needs to secure an agreement on restructuring its debt in order to secure new bailout funds and avert a default when a EUR14.4 billion bond redemption comes due on March 20.
Markets were also eyeing government debt sales from France and Spain later in the day, in what was being viewed as a critical test of investor's appetite for European sovereign debt.
China's Gold purchases slowed down ahead of the Lunar New Year holiday, while India's bullion traders held off placing fresh orders after an increase in gold import duty was announced earlier this week.
India's government raised Gold import duty to 2 percent of value from the previous flat rate of 300 rupees per 10 grams.
Now technically market is trading in the range as RSI for 18days is currently indicating 50.44, where as 50DMA is at 54131 and Silver is trading below the same and getting support at 53126 and below could see a test of 52865 level, And resistance is now likely to be seen at 53754, a move above could see prices testing 54121.
Trading Ideas:
Silver trading range is 52865-54121.
Silver trading in the tight range as weak US data prompted investors to book profits
China's gold purchases slowed down ahead of the Lunar New Year holiday.
India's government raised silver import duty to 6 percent of value.
Courtesy: Kedia Commodities
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