MCX Silver likely to move in a range of 45489-46721
Commodity Online | October 10 2019
UPDATED 09:10:04 IST

NCDEX Chana under fresh buying; Resistance seen at 4103

MCX Cotton under short covering; Resistance seen at 16200

NCDEX Jeera under fresh buying; Support seen at 13150

NCDEX Turmeric under fresh buying; Support seen at 5248

NCDEX Mustard Seed under short covering; Support seen at 4242

Technically MCX Silver is getting support at 45767 and below same could see a test of 45489 levels, and resistance is now likely to be seen at 46383, a move above could see prices testing 46721.

Silver on MCX settled up 0.37% at 46044 as uncertainties surrounding the Sino-U.S. trade war and gloomy Brexit headlines dented investor sentiment. Citing unexpectedly intense volatility in wholesale funding markets, Federal Reserve Chairman Jerome Powell indicated that the central bank intends to resume increasing the size of its balance sheet.

Powell noted in remarks at the National Association for Business Economics annual meeting in Denver, Colorado, that notable liquidity pressures in money markets in mid-September caused overnight interest rates to spike, with the effective federal funds rate briefly moving above the Fed's target range.

The Fed responded by conducting temporary open market operations, which Powell said kept the federal funds rate in the target range and alleviated money market strains more generally. On the Brexit front, German Chancellor Angela Merkel told U.K. Prime Minister Boris Johnson that Northern Ireland has to remain part of the customs union in any deal, which Johnson said has paved the way for a no-deal Brexit.

Prospects for progress in U.S.-China trade talks dimmed after the Trump administration imposed visa restrictions on Chinese officials and also expanded its trade blacklist to include some of China's top artificial intelligence startups. The Trump administration is also moving ahead with discussions around possible restrictions on capital flows into China, with a focus on investments made by U.S. government pension funds. US producer prices unexpectedly fell in September, leading to the smallest annual increase in nearly three years, which could give the Federal Reserve room to cut interest rates again later this month.

Trading Ideas:
--Silver trading range for the day is 45489-46721.
--Silver prices remained supported as uncertainties surrounding the Sino-U.S. trade war and gloomy Brexit headlines dented investor sentiment.
--Federal Reserve Chairman Jerome Powell indicated that the central bank intends to resume increasing the size of its balance sheet.
--Prospects for progress in U.S.-China trade talks dimmed after the Trump administration imposed visa restrictions on Chinese officials and also expanded its trade blacklist.

Courtesy: Kedia Commodities