MCX Silver under fresh buying; Resistance seen at 71470
Commodity Online | August 05 2020
UPDATED 09:40:37 IST

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Technically Silver market is under fresh buying as market has witnessed gain in open interest by 3.56% to settled at 13494 while prices up 4049 rupees.

Now MCX Silver is getting support at 66653 and below same could see a test of 63509 levels, and resistance is now likely to be seen at 71470, a move above could see prices testing 73143.

Silver yesterday settled up by 6.16% at 69797 as the dollar slipped as investors fretted over an uncertain economic outlook and ongoing political wrangling over a U.S. relief plan.

With many countries extending lockdowns to curb the coronavirus pandemic, the chances of any economic rebound reversing course have risen.

As White House officials and congressional Democrats seek to compromise on another stimulus package, Charles Evans, the Chicago Federal Reserve president, said that fiscal policy is really fundamental for getting the economy going.

Amid growing talk that a deal won't be reached until September, St. Louis Fed President James Bullard said separately that he was optimistic a deal could be reached.

U.S.-China tensions also remain on investors' radar after U.S. President Donald Trump said he will ban popular Chinese-owned video app TikTok in the United States unless a tech company such as Microsoft buys it.

A report released by the Institute for Supply Management showed a bigger than expected acceleration in the pace of growth in U.S. manufacturing activity in the month of July. The ISM said its purchasing managers index rose to 54.2 in July from 52.6 in June, with a reading above 50 indicating growth in manufacturing activity.

Trading Ideas:
--Silver trading range for the day is 63509-73143.
--Silver prices rallied as the dollar slipped as investors fretted over an uncertain economic outlook and ongoing political wrangling.
--With many countries extending lockdowns to curb the coronavirus pandemic, the chances of any economic rebound reversing course have risen.
--Charles Evans, the Chicago Federal Reserve president, said that fiscal policy is really fundamental for getting the economy going.

Courtesy: Kedia Commodities