At the Globex, Silver is seen trading down by $0.201, at 32.21. As discussed in Gold’s outlook, the Euro has given a pull back after the Spain has elected the new government.
The US congress is expected to announce a failed approach on saving at least $1.2 trillion federal budget savings.
In the early morning Japan’s export fell for the first time in three months owing to the Yen’s appreciation and turmoil in Europe is affecting the nation’s recovery.
The dollar index is likely to get weaken as the US congress got divided and are scrambling to meet a deadline on how to curb massive deficit.
Overall, the weak equities are likely to keep the metal under pressure while the strong Euro may support the prices. We expect a price pull back in the evening, before which we expect Silver may remain weak for the morning session.
MCX Silver Dec'11 53755-54546 resistance: 55972-56465 Range: 56400-55000
Courtesy: Karvy Commtrade Ltd.
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