MCX Silver under long liquidation; Resistance seen at 49048
Commodity Online | June 23 2020
UPDATED 09:40:06 IST

MCX Gold under short covering; Resistance seen at 49465

MCX Silver under long liquidation; Support seen at 65712

MCX Crude Oil under fresh selling; Support seen at 3781

MCX Natural Gas under long liquidation; Support seen at 176.7

MCX Copper under fresh selling; Resistance seen at 614.8

Technically Silver market is under long liquidation as market has witnessed drop in open interest by 2.71% to settled at 10369 while prices down 136 rupees.

Now MCX Silver is getting support at 48167 and below same could see a test of 47833 levels, and resistance is now likely to be seen at 49048, a move above could see prices testing 49595.

Silver yesterday settled down by 0.28% at 48500 on profit booking after prices gains lifted by Fed Chair Jerome Powell's pessimistic remarks.

Powell said that there's still a long way until the US reach full economic recovery from the coronavirus fallout, and warned of a "significant" uncertainty around that path.

These statements are in line to the Chairman's testimony before the US Congress this week about the slow economic recovery, and stated that the Fed will use all the necessary tools to support the economy.

The continued spread of the novel coronavirus could hamper the U.S. economic rebound from the pandemic, and more fiscal and monetary support will likely be needed, Boston Federal Reserve President Eric Rosengren said.

Rosengren repeated his view that the U.S. unemployment rate will likely be "at double-digit levels" at the end of 2020 and cautioned against reopening the economy too quickly after the end of lockdowns aimed at containing the virus.

"This lack of containment could ultimately lead to a need for more prolonged shut-downs, which result in reduced consumption and investment, and higher unemployment," Rosengren said.

The U.S. current account deficit dipped to a near two-year low in the first quarter as the COVID-19 pandemic restricted the flow of goods and services, while companies continued to repatriate profits back home.

Trading Ideas:
--Silver trading range for the day is 47833-49595.
--Silver dropped on profit booking after prices gains lifted by Fed Chair Jerome Powell's pessimistic remarks.
--Powell said that there's still a long way until the US reach full economic recovery from the coronavirus fallout, and warned of a "significant" uncertainty around that path.
--The continued spread of coronavirus could hamper U.S. economic rebound, and more fiscal and monetary support will likely be needed, Fed’s Rosengren said.

Courtesy: Kedia Commodities

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