Silver ended higher as physical Silver demand has picked up in recent weeks, boosted by retailers chasing better price momentum.
Silver coin sales were brisk even after considering January sales are usually higher than other months due to a consumer preference for New Year’s edition.
Indeed, U.S. Mint data showed that sales of silver American Eagles totaled 5.3 million ounces on Friday, on pace to surpass its record high of 6.4 million ounces set in January 2011.
Greece resumed talks on Friday with its private bondholders on a long-awaited deal needed to prevent a default by Athens.
It is pushing to wrap up an agreement by Monday that will pave the way for a fresh aid injection before 14.5 billion euros of bond redemptions fall due in March.
Physical demand for the precious metal in India, the world's number one Gold consumer, remained soft as the weaker rupee made the dollar-priced metal expensive for local buyers.
Demand is also likely to ease in China, a key market, during next week's Lunar New Year holiday.
The downward trend in the Gold Silver ratio has continued and now stands at 51.97 with a downside target of 49.7,the late October 2011 low.
Now technically market is trading in the range as RSI for 18days is currently indicating 62.15, where as 50DMA is at 54025.72 and silver is trading above the same and getting support at 55099 and below could see a test of 54650 level, And resistance is now likely to be seen at 55938, a move above could see prices testing 56328.
Trading Ideas:
Silver trading range is 54650-56328.
Silver ended higher as physical silver demand has picked up in recent weeks
U.S. Mint data showed that sales of silver American Eagles totaled 5.3 million ounces on Friday
Physical demand remained soft as the weaker rupee made the prices expensive for local buyers
Courtesy: Kedia Commodities
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