Silver edged higher on buoyed by a euro strengthened by hopes Greece was moving closer to a bailout deal, and surprisingly strong China inflation also supported sentiment.
Also support seen from basemetal and crude as Greek political leaders have agreed on all points of a bailout package with international lenders would continue so a deal could be concluded before a meeting of euro zone FM.
Bailing out Greece will boost the euro against the dollar for a while, making dollar-denominated assets such as Gold cheaper and more attractive. This would help gold maintain its appeal even if the Greek deal diminishes its safe haven status.
Bullion was also boosted by a stronger than expected inflation reading out of China, which investors said may mean the central bank will hold off on aggressive monetary easing for now.
Later in the day investors will focus on what the ECB is willing to do to help Greece when it holds its monthly policy meeting, with interest rates expected to stay on hold ahead of a major funding operation later this month.
The gold-silver ratio dipped to around 51, its lowest level in more than three months.
Now technically market is trading in the range as RSI for 18days is currently indicating 61.59, where as 50DMA is at 53971 and Silver is trading above the same and getting support at 56764 and below could see a test of 56351 level, And resistance is now likely to be seen at 57657, a move above could see prices testing 58137.
Trading Ideas:
Silver trading range for the day is 56351-58137.
Silver edged higher on buoyed by a euro strengthened by hopes Greece was moving closer to a bailout deal
Also support seen from basemetal and crude as Greek political leaders have agreed on all points of a bailout package
Holdings at ishares silver trust gained by 36.27 tonnes to 9700.53 tonnes.
Courtesy: Kedia Commodities
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