Silver futures opened at 57352 and closed at 56821, down -444 that is nearly -0.78% from the previous trading day as uncertainty in the euro-zone economy increased after Greece failed to strike an agreement in its latest debt talk and the ECB still has not figured out a solution for Greek debt restructuring.
Market focuses include interest resolutions of ECB and the Bcb. Reports emerged, however, that Athens has agreed to slash public-sector payrolls, but some in the country's ruling coalition balked at pension reforms, thus throwing a formal agreement into delay anew.
Until that bailout money begins flowing, markets will remain on edge, and such sentiment sent investors stocking up on dollars as a safety move, selling Gold in the process.
Gold Silver ratio is trading at 49.58 level a downward moves in the ratio when bullion prices are rising show that silver prices are gaining faster than gold.
This suggests broad-based sentiment is getting more bullish for bullion, with investors jumping into Silver because they see it as a cheaper entry point - silver has pulled back considerably more than Gold in recent months.
Now technically market is trading in the range as RSI for 18days is currently indicating 57.27, where as 50DMA is at 53959 and silver is trading above the same and getting support at 56414 and below could see a test of 56008 level, And resistance is now likely to be seen at 57502, a move above could see prices testing 58184.
Trading Ideas:
Silver trading range for the day is 56008-58184.
Silver dipped as uncertainty in the euro-zone economy increased after Greece failed to strike an agreement
Gold Silver Ratio is attempting to extend lower indicating well supportive for bullion rally.
Spot silver hits highest since mid-Nov '11 at $34.53/oz on euro rally
Courtesy: Kedia Commodities
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