Technically Silver market is under long liquidation as market has witnessed drop in open interest by 15.89% to settled at 9769 while prices down 940 rupees.
Now MCX Silver is getting support at 48739 and below same could see a test of 48053 levels, and resistance is now likely to be seen at 50501, a move above could see prices testing 51577.
Silver yesterday settled down by 1.87% at 49424 on profit taking and upbeat data on U.S. private sector employment and manufacturing activity.
However, the dollar's weakness and uncertainty about the pace of economic recovery amid rapidly surging coronavirus infections across the U.S. and several other countries limited the downside.
A report from the Institute for Supply Management showed U.S. manufacturing activity unexpectedly expanded in the month of June. The ISM said its purchasing managers index jumped to 52.6 in June from 43.1 in May, with a reading above 50 indicating an expansion in manufacturing activity.
A separate report released by payroll processor ADP showed a significant increase in private sector employment in the month of June as well as a substantial upward revision to the data for May.
ADP said private sector employment jumped by 2.369 million jobs in June, which was below estimates for a spike of about 3.000 million jobs.
However, revised data showed private sector employment soared by 3.065 million jobs in May compared to the previously reported loss of 2.760 million jobs.
Bank of England Governor Andrew Bailey said the British central bank would look at the possibility of introducing climate change considerations when deciding which corporate bonds it buys, but only once the coronavirus crisis has eased.
--Silver trading range for the day is 48053-51577.
--Silver dropped on profit taking and upbeat data on U.S. private sector employment and manufacturing activity.
--However, the dollar's weakness and uncertainty about the pace of economic recovery amid rapidly surging coronavirus infections limited the downside.
--The ISM said its purchasing managers index jumped to 52.6 in June from 43.1 in May.
Courtesy: Kedia Commodities