Silver prices rose by nearly 0.72% as surprisingly robust manufacturing figures out of the US, Europe and China sparked hopes that green shoots of recovery were sprouting in the global economy, which wetted an appetite for risk that sent the greenback falling and Silver rising.
The ISM’s U.S. mfg index jumped to 54.1 vs 53.1 in Dec, and while slightly below some market expectations, the figure did break even further away from the 50 mark, the boundary between economic growth and contraction.
The Markit Economics mfg data based on a survey of PMI in the euro region rose to 48.8 in Jan from 46.9 in Dec.
Positive output figures in Germany, the UK and China emerged as well, fueling the risk-on session. Mfg figures prompted investors to sell their dollar positions and go long on stocks and currencies worldwide, thus ditching greenback positions in the process.
Since bullion often trades inversely with the dollar, the risk-on session prompted a run to the silver throughout the early portions of the day. Some market watchers warned, however, that the silver rally could cool.
Now technically market is trading in the range as RSI for 18days is currently indicating 61.59, where as 50DMA is at 53970 and Silver is trading above the same and getting support at 56404 and below could see a test of 55974 level, And resistance is now likely to be seen at 57216, a move above could see prices testing 57598.
Trading Ideas:
Silver trading range is 55974-57598.
Silver prices rose as surprisingly robust manufacturing figures out of the U.S., Europe and China sparked hopes.
The ISM’s U.S. mfg index jumped to 54.1 vs 53.1 in Dec, and while slightly below some market expectations
Positive output figures in Germany, the UK and China emerged as well, fueling the risk-on session
Courtesy: Kedia Commodities
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