MCX Silver under fresh selling; Resistance seen at 48654
Commodity Online | May 27 2020
UPDATED 09:40:16 IST

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Technically Silver market is under fresh selling as market has witnessed gain in open interest by 4.1% to settled at 9163 while prices down 436 rupees.

Now MCX Silver is getting support at 47333 and below same could see a test of 46844 levels, and resistance is now likely to be seen at 48654, a move above could see prices testing 49486.

Silver yesterday settled down by 0.9% at 47821 as riskier assets such as equities rallied amid optimism about a potential coronavirus vaccine, and economic recovery after several countries implemented plans to further relax lockdown restrictions.

European nations including Spain, Italy, Germany and Greece moved to ease their lockdowns and investors eyed the potential for more stimulus measures. Japan has lifted a state of emergency for Tokyo and four remaining areas as the country managed to get the coronavirus infection under control in just one and a half months.

The Nikkei newspaper reported the government is finalizing a plan for new stimulus worth almost $1 trillion to help companies ride out the coronavirus pandemic. Trade tensions remained in focus as Beijing's move to impose security laws on Hong Kong has heightened concerns about the future stability of the city and global trade prospects.

Hong Kong residents defied social distancing rules and protested on streets while the U.S. Commerce Department responded by adding 33 Chinese companies and other institutions to a blacklist for human rights violations and to address U.S. national security concerns.

China will strengthen its economic policy and counter-cyclical adjustments and continue to push to lower interest rates on loans, central bank Governor Yi Gang said. Yi, in an interview published by the central bank, said China’s economic fundamentals are unchanged despite many uncertainties and reiterated that the central bank’s prudent monetary policy will be more flexible.

Trading Ideas:
--Silver trading range for the day is 46844-49486.
--Silver prices dropped as riskier assets such as equities rallied amid optimism about a potential coronavirus vaccine, and economic recovery.
--Trade tensions remained in focus as Beijing's move to impose security laws on Hong Kong has heightened concerns about the future stability of the city.
--European nations including Spain, Italy, Germany and Greece moved to ease their lockdowns and investors eyed the potential for more stimulus measures.

Courtesy: Kedia Commodities