There was hardly any movement is commodity like silver whose volatility is known to all. It’s all because the festive mood has kept the investors away from the market.
However, traders are expected to bang onto the market once the holidays get over. Spot silver changed a little yesterday to settle with mild gain of 0.04% from the prior.
Among Asian equities except India most of the major indices were closed. Indian rupee depreciated once again and Euro edged slightly lower against the dollar at settlement.
Holdings of the SPDR trust, world’s largest gold backed exchange traded fund, remained unchanged at 1254.57 tons as on Dec.23 after it reduced by 13 tons in a single day.
Outlook:
Today morning Silver prices are seen trading at $28.76 down by $0.324 from its previous close. As we have discussed in gold’s outlook, Asian equities are seen trading lower for the first time in three days.
Concerns regarding the Italian debt sale might keep the market under stress. Since the Italian bond yield again rose to near 7%, it is now important to watch demand for the Italian debt.
From the economic data front, the US house price index might fall while the consumer confidence and manufacturing activity might improve. So, the weak equities might pressurize the metal in the morning session.
But, in the later part of the US session, the manufacturing data might support the metal to recover a tad. Overall, silver seems to remain weak at least till the US session and hence, we recommend to remain short for the metal.
MCX Silver Mar'11 support:52876 52999 resistance:53229 53313 Sell at 53070 TP 52600/52200 SL 53450
Courtesy: Karvy Commtrade Ltd.
If you want to have a free trial on Indian commodities or equity markets CALL TOLL FREE 08049311177 or visit tips.commodityonline.com
