Technically Silver market is under fresh selling as market has witnessed gain in open interest by 3.32% to settled at 11311 while prices down 106 rupees.
Now MCX Silver is getting support at 40862 and below same could see a test of 40614 level, And resistance is now likely to be seen at 41396, a move above could see prices testing 41682.
Silver on MCX settled down 0.26% at 41110 as the dollar index jumped after a report showed U.S. producer prices rebounded in August.
Prices remained on track to suffer their longest losing streak in more than month as appetite for safe-haven investments continued to fade, underpinning a move higher in both the dollar and treasury yields.
U.S. producer prices rebounded in August, driven by a surge in the cost of gasoline, and there were also signs of a pickup in underlying producer inflation. North Korea displayed trademark defiance over new United Nations sanctions imposed after its sixth and largest-ever nuclear test, vowing to redouble efforts to fight off what it said was the threat of a U.S. invasion.
U.S. President Donald Trump blocked a Chinese-backed private equity firm from buying a U.S.-based chipmaker, sending a clear signal to Beijing that Washington will oppose takeover deals that involve technologies with potential military applications.
The Bank of England must decide how forcefully to talk about the prospect of a first interest rate rise in a decade on Thursday when it will weigh up the need to help Britain’s Brexit-bound economy against tackling a jump in inflation.
--Silver trading range for the day is 40614-41682.
--Silver dropped as the dollar index jumped after a report showed U.S. producer prices rebounded in August.
--U.S. producer prices rebounded in August, driven by a surge in the cost of gasoline, and there were also signs of a pickup in underlying producer inflation.
--Markets remain skeptical the Fed will raise rates again before the end of this year due to worries over the subdued inflation outlook.
Courtesy: Kedia Commodities