Technically Silver market is under long liquidation as market has witnessed drop in open interest by 3.11% to settled at 11354 while prices down 658 rupees.
Now MCX Silver is getting support at 65712 and below same could see a test of 64781 levels, and resistance is now likely to be seen at 67287, a move above could see prices testing 67931.
Silver yesterday settled down by 0.98% at 66642 as the dollar gained in strength, rebounding from recent losses. Pressure also seen as bond yields rose after the European Central Bank (ECB) delivered a hawkish tweak about operation of the Pandemic Emergency Purchase Program (PEPP).
However, continued optimism about further stimulus from the Biden administration supported the bullion and limited its downside. After keeping interest rates at their record-low level and bond-buying at €1.85 trillion ($2.25 trillion), the ECB signaled that it will not necessarily use the whole package.
In economic news, a report released by the National Association of Realtors showed existing home sales in the U.S. unexpectedly rebounded in the month of December, climbing by 0.7% to an annual rate of 6.76 million.
In November, home sales had tumbled by 2.2% to a revised rate of 6.71 million. U.S. business activity accelerated at the start of the new year, particularly among manufacturers, while capacity constraints generated more inflationary pressures.
The IHS Markit flash January composite index of purchasing managers at manufacturers and service providers increased to 58, the second-highest since March 2015, from 55.3 a month earlier, the group reported.
U.S. manufacturing activity surged to its highest level in nearly 14 years in early January, but bottlenecks in the supply chain caused by the COVID-19 pandemic are driving up prices and signaling a rise in inflation in the months ahead.
--Silver trading range for the day is 64781-67931.
--Silver prices drifted lower as the dollar gained in strength, rebounding from recent losses.
--Pressure also seen as bond yields rose after the ECB delivered a hawkish tweak about operation of the Pandemic Emergency Purchase Program.
--However, continued optimism about further stimulus from the Biden administration supported the bullion and limited its downside.
Courtesy: Kedia Commodities