Fresh selling seen in MCX Silver; Resistance seen at 45565
Commodity Online | September 19 2016
UPDATED 11:30:46 IST

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Silver on MCX settled down -0.8% at 45273 as a stronger U.S. dollar and jitters over the path of monetary policy weighed on demand. Investors have been reluctant to add long positions in bullion ahead of the Federal Reserve’s two-day policy meeting, which concludes Wednesday. With an improvement in consumer expectations offset by a deterioration in views of current economic conditions, the University of Michigan released a report showing that U.S. consumer sentiment has been unexpectedly flat in September.

The University of Michigan said the preliminary reading on its consumer sentiment index for September came in at 89.8, unchanged from the final August reading. Reflecting pullbacks in manufacturing and utilities output, the Federal Reserve released a report on Thursday showing that U.S. industrial production fell by more than expected in the month of August. The Fed said industrial production dropped by 0.4 percent in August after climbing by a revised 0.6 percent in July.

The bigger than expected drop in production in August was partly due to a 0.4 percent decline in manufacturing output, which reversed the increase seen in July. Retail sales in the U.S. fell by more than expected in the month of August, the Commerce Department revealed in a report. The Commerce Department said retail sales dipped by 0.3 percent in August following a revised 0.1 percent uptick in July. Retail sales had been expected to slip by 0.1 percent.

Technically market is under fresh selling as market has witnessed gain in open interest by 7.8% to settled at 9330 while prices down -365 rupee, now Silver is getting support at 45016 and below same could see a test of 44759 level, and resistance is now likely to be seen at 45565, a move above could see prices testing 45857.

Trading Ideas:
--Silver trading range for the day is 44759-45857.
--Silver prices dropped as a stronger U.S. dollar and jitters over the path of monetary policy weighed on demand.
--Retail sales in the U.S. fell by more than expected in the month of August, the Commerce Department revealed in a report showed.
--Reflecting pullbacks in manufacturing and utilities output, a report on showing that U.S. industrial production fell by more than expected.

Courtesy: Kedia Commodities