MCX Silver market under long liquidation; Resistance seen at 43205
Commodity Online | November 08 2016
UPDATED 10:13:38 IST

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Silver settled down by -1.07% at 42933 as demand for safe-haven assets ebbed after the FBI said that no charges were warranted in the case of Democrat Hillary Clinton's use of a private email server, lifting a cloud over her presidential campaign just two days before the U.S. election. However, hopes for a Clinton win mounted after FBI Director informed Congress over the weekend that it had "not changed its conclusions" on the private email server maintained by the Democratic candidate.

The European Central Bank is not considering reducing its bond-buying program known as Quantitative Easing, and is looking instead at how far to extend it after the current March 2017 deadline, the Bank of Italy said. Facing stubbornly low inflation, the ECB is expected to decide in December whether to extend its 80 billion euro ($88.5 billion) per month asset buys beyond March, having to balance diminishing costs with increasing side effects. Hedge funds are piling into the perceived safety of bullion, increasing their wagers that the metal will rally for a second straight week, U.S. government data showed.

That marked the first consecutive gain since July as money managers pushed their holdings to a one-month high. A victory for either side could spell turmoil. Both campaigns have amassed lawyers and could challenge a defeat, while supporters from the losing camp could stage political protests. The increasing risk of tumult has driven investors to exchange-traded funds backed by bullion. Technically market is under long liquidation as market has witnessed drop in open interest by -0.39% to settled at 12862 while prices down -465 rupee, now Silver is getting support at 42635 and below same could see a test of 42337 level, and resistance is now likely to be seen at 43205, a move above could see prices testing 43477.

Trading Ideas:
--Silver trading range for the day is 42337-43477.
--Silver prices dropped as demand for safe-haven assets ebbed after the FBI said that no charges were warranted against Hillary.
--The election fears overshadowed comments last week from Fed that signaled policy makers could start raising U.S. interest rates soon.
--Hedge funds are piling into the perceived safety of bullion, increasing their wagers that the metal will rally for a second straight week.

Courtesy: Kedia Commodities