Fresh selling seen in MCX Silver; Resistance seen at 42243
Commodity Online | October 14 2016
UPDATED 11:16:10 IST

MCX Crude Oil under short covering; Support seen at 2876

MCX Silver under long liquidation; Resistance seen at 61260

MCX Gold under fresh selling; Support seen at 50092

NCDEX Jeera under fresh selling; Resistance seen at 14140

NCDEX Turmeric under fresh selling; Support seen at 5844

Silver prices edged lower as stocks firmed and the U.S. dollar rose on expectations the Federal Reserve would raise interest rates by year-end. The number of Americans filing for unemployment benefits held at a 43-year low last week, pointing to sustained labour market strength that could pave the way for the Fed to raise interest rates in December. China's September exports plunged, while imports unexpectedly shrank after picking up in August, suggesting signs of steadying in the world's second-largest economy may be short-lived.

Exports tumbled 10.0% from a year earlier, far worse than forecasts for a decline of 3.0%, while imports dropped 1.9%, compared to expectations for a gain of 1.0%. That left China with a trade surplus of $41.99 billion for the month, the lowest in six months, the General Administration of Customs said. The downbeat figures triggered a fall in global equities and a drop in the U.S. dollar and gave a lift to safe-haven assets, such as gold and the yen.

Meanwhile, minutes of the Federal Reserve's September policy meeting released showed several voting members of the policy committee judged a rate hike would be warranted "relatively soon" if the U.S. economy continued to strengthen. Import prices in the U.S. saw a modest uptick in the month of September, according to a report released by the Labor Department.

The report said import prices inched up by 0.1 percent in September after falling by 0.2 percent in August. Technically market is under fresh selling as market has witnessed gain in open interest by 3.12% to settled at 16240 while prices down -161 rupee, now Silver is getting support at 41694 and below same could see a test of 41498 level, and resistance is now likely to be seen at 42243, a move above could see prices testing 42596.

Trading Ideas:
--Silver trading range for the day is 41498-42596.
--Silver prices edged lower as stocks firmed and the U.S. dollar rose on expectations the Federal Reserve would raise interest rates by year-end
--The number of Americans filing for unemployment benefits held at a 43-year low last week, pointing to sustained labour market strength.
--Minutes of Fed’s meeting released showed several voting members of the policy committee judged a rate hike would be warranted "relatively soon".

Courtesy: Kedia Commodities

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