MCX Silver under fresh buying; Resistance seen at 49567
Commodity Online | May 21 2020
UPDATED 09:40:42 IST

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Technically Silver market is under fresh buying as market has witnessed gain in open interest by 5.24% to settled at 8514 while prices up 237 rupees.

Now MCX Silver is getting support at 48479 and below same could see a test of 47901 levels, and resistance is now likely to be seen at 49567, a move above could see prices testing 50077.

Silver yesterday settled up by 0.49% at 49058 after Federal Reserve Chairman Jerome Powell reaffirmed the central bank will provide more support to the economy.

Testifying before the Senate Banking Committee, Powell said the central bank needs to be prepared to "act further and I would say we are, if the need is there." "As a society, we should do everything we can to provide relief to those who are suffering for the public good," Powell said.

Traders appeared to be betting on hopes the various stimulus measures to support the economy will eventually result in continued demand for the metal. According to the data from the Commerce Department, new residential construction in the U.S. dropped in the month of April.

The report said housing starts plummeted by 30.2% to an annual rate of 891,000 in April after tumbling by 18.6% to a revised 1.276 million in March. The Commerce Department said building permits also slumped by 20.8% to an annual rate of 1.074 million in April after falling by 5.7% to a revised 1.356 million in March.

Reflecting notable decreases in manufacturing and wholesale inventories, the Commerce Department released a report showing a modest drop in U.S. business inventories in the month of March. The report said business inventories edged down by 0.2 percent in March after falling by a revised 0.5 percent in February.

Trading Ideas:
--Silver trading range for the day is 47901-50077.
--Silver gained after Federal Reserve Chairman Jerome Powell reaffirmed the central bank will provide more support to the economy.
--Fed’s Powell said the central bank needs to be prepared to "act further and I would say we are, if the need is there."
--US building permits slumped by 20.8% to an annual rate of 1.074 million in April after falling by 5.7% to a revised 1.356 million in March.

Courtesy: Kedia Commodities

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