Fresh selling seen in Silver, open interest up by 1.44%
Commodity Online | May 27 2016
UPDATED 12:02:44 IST

MCX Mentha Oil likely to move in a range of 1259.7-1295.5

MCX Aluminium may trade between 130.5-132.3 levels

MCX Nickel under long liquidation; Support seen at 1091.2

MCX Zinc under fresh selling; Resistance seen at 192.7

MCX Copper under fresh selling; Support seen at 435.2


Silver on MCX settled down -0.45% at 39051 with weak sentiments amid strong U.S. economic data and a slightly lower dollar, as investors await a highly-anticipated appearance from Federal Reserve chair Janet Yellen for further signals on whether the U.S. central bank could raise interest rates at a closely-watched meeting next month. Yesterday from dat side the U.S. Labor Department said initial jobless claims fell by 10,000 for the week ended on May 20 to 268,000, slightly below market's expectations of 275,000.

At the same time, the four-week average ticked up by 3,000 to 278,500, reflecting three previous weeks of considerable gains. The rising four-week average could provide an ominous harbinger for the labor market heading into next week's critical May jobs' report, the last before the Federal Open Market Committee meets on June 14-June 15. Yellen will make her first public appearance in nearly two months at a ceremony when she receives the Radcliffe Medal from Harvard University's Radcliffe Institute for Advanced Study on Friday afternoon.

Yellen could provide further hints on the pace of the Fed's long-term rate path in a Question-And-Answer session with Harvard economics professor Gregory Mankiw after the presentation. Over the last two months, Yellen has reiterated that the Fed will raise rates gradually in the current cycle, amid widespread volatility in global financial markets and persistently low inflation. Technically market is under fresh selling as market has witnessed gain in open interest by 1.44% to settled at 9873 while prices down -178 rupee, now Silver is getting support at 38829 and below same could see a test of 38607 level, and resistance is now likely to be seen at 39458, a move above could see prices testing 39865.

Trading Ideas:
--Silver trading range for the day is 38607-39865.
--Silver dropped amid strong U.S. economic data and as investors await a highly-anticipated appearance from Fed’s Janet Yellen for further signals
--The U.S. economy is set to grow by a 2.9% annualised rate in second quarter following the latest data on durable goods orders and advance goods trade showed
--The U.S. Labor Department said initial jobless claims fell by 10,000 for the week ended on May 20 to 268,000, slightly below expectations of 275,000.

Courtesy: Kedia Commodities
 
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