Technically Silver market is under short covering as market has witnessed drop in open interest by 4.39% to settled at 11370 while prices up 403 rupees.
Now MCX Silver is getting support at 60292 and below same could see a test of 59631 levels, and resistance is now likely to be seen at 61392, a move above could see prices testing 61831.
Silver yesterday settled up by 0.67% at 60953 amid concerns over a slowing global growth and the broader economic impact of Chinese property developer Evergrande's debt crisis.
New orders for U.S.-made goods accelerated in August, pointing to sustained strength in manufacturing even as economic growth appeared to have slowed in the third quarter because of shortages of raw materials and labor.
The Commerce Department said on Monday that factory orders increased 1.2% in August. Data for July was revised higher to show orders rising 0.7% in July instead of gaining 0.4% as previously reported.
Investors now await the US jobs report due on Friday, which is expected to show an increase of 460 thousand in non-farm payrolls and could influence the Federal Reserve's timeline for tapering its asset purchases.
Investors fear that supply chain disruptions across the globe could keep inflation higher for a longer period than thought. Evergrande missed two deadlines to pay more than $180 million in interest to foreign investors who hold its dollar-denominated bonds.
In her Congressional testimony, Treasury Secretary Janet Yellen has warned of "catastrophic economic consequences" if the debt ceiling is not raised by October 18th. The U.S. Federal Reserve may be close to meeting the inflation mandate set for raising interest rates, Philadelphia Fed Bank President Patrick Harker said.
--Silver trading range for the day is 59631-61831.
--Silver rose amid concerns over a slowing global growth and the broader economic impact of Chinese property developer Evergrande's debt crisis.
--Factory orders increase 1.2% in August.
--August core capital goods orders revised slightly up.
Courtesy: Kedia Commodities