At the Globex, silver is seen trading down by $0.068 at $33.875. As discussed in Gold’s outlook, the Euro is at a descend mode as France and Germany told Greece that the aid wont be paid unless the country adopts proposals.
With referendum announced by the Greek prime minister, which had believed the euro zone to be in agreement over the proposals, created panic in the market.
Now, the referendum is raising the concern about Greece’s intension to stay in the Euro or not. German chancellor hinted before the G-20 meeting starts today that Greece’s government won’t get a single cent of assistance if voters reject the plan.
This might continue to weigh on the Euro which is also expected to pressurize the metal.
The Asian equities might also trade at a lower side for the same reason. From ECB’s part also they might keep the interest rate intact but listing to OECD, there also lies a chance to reduce the rate which might keep the Euro and silver under pressure for the day. Overall, volatility is expected and silver might remain range bound.
MCX Silver Dec'11 support:55208 -55633 resistance:56507- 56869 Range: 55700-56450
Courtesy: Karvy Commtrade Ltd.
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