MCX Silver under short covering; Resistance seen at 58266
Commodity Online | July 22 2020
UPDATED 09:40:14 IST

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Technically Silver market is under short covering as market has witnessed drop in open interest by 0.84% to settled at 16625 while prices up 3337 rupees.

Now MCX Silver is getting support at 55611 and below same could see a test of 53879 levels, and resistance is now likely to be seen at 58266, a move above could see prices testing 59189.

Silver yesterday settled up by 6.18% at 57342 tracking rise in COMEX silver prices sprinted past $21 for the first time since September 2016.

Prices gained as escalating numbers of coronavirus cases around the world raised concerns over the pace of economic recovery and fuelled expectations of more stimulus measures.

Investors are now looking to an ongoing European Union leaders meeting in Brussels over a proposed recovery fund designed to help the bloc cope with its deepest recession since World War Two.

Coronavirus cases continue to surge in the United States, and experts at the U.S. Centers for Disease Control and Prevention have warned that cases and deaths could rise this autumn and winter.

EU leaders agreed on a EUR 1.8 trillion package of measures to tackle the exceptional nature of the economic and social situation posed by the coronavirus pandemic. After four days of marathon talks in Brussels, EU leaders conceded the package worth EUR 750 billion.

Accordingly, the bloc will issue debt jointly which would be provided to member nations hit hardest by the Covid-19. In the United States, congressional Republicans said they were working on a $1 trillion relief bill aimed at cushioning the heavy economic toll of the pandemic.

Trading Ideas:
--Silver trading range for the day is 53879-59189.
--Silver prices rallied tracking rise in COMEX silver prices sprinted past $21 for the first time since September 2016.
--Prices gained as escalating numbers of coronavirus cases around the world raised concerns over the pace of economic recovery.
--EU leaders agreed on a EUR 1.8 trillion package of measures to tackle the exceptional nature of the economic and social situation.

Courtesy: Kedia Commodities