Silver market under long liquidation; Support seen at 39109
Commodity Online | January 11 2019
UPDATED 10:56:01 IST

MCX Mentha Oil may trade between 1310.1-1371.3 levels

MCX Aluminium under fresh buying; Resistance seen at 144.2

MCX Nickel under short covering; Support seen at 859.6

MCX Zinc under fresh selling; Support seen at 202.9

NCDEX Chana under long liquidation; Resistance seen at 4457

Technically Silver market is under long liquidation as market has witnessed drop in open interest by 3.15% to settled at 16840 while prices down 236 rupees.

Now MCX Silver is getting support at 39109 and below same could see a test of 38934 levels and resistance is now likely to be seen at 39610, a move above could see prices testing 39936.

Silver on MCX settled down 0.6% at 39285 as investors awaited remarks from Fed Jerome Powell amid expectations that the head of the central bank will reaffirm a pause in policy tightening.

Powell’s last appearance sent stocks soaring as he noted that the Fed could be “patient” on further policy tightening. Markets currently price in that the central bank will be on pause all throughout 2019 and put about a 14% chance that it will actually cut interest rates by the end of the year.

Presidents of four of the 12 Fed regional banks on Wednesday said they wanted greater clarity on the state of the economy before extending the central bank's rate hike campaign any further, suggesting that the Fed could take months before another increase is undertaken.

St. Louis Fed President James Bullard, considered the most dovish policymaker, even suggested that further tightening could tip the U.S. economy into recession. Minutes from the Fed's Dec. 18-19 policy meeting revealed that several members said they could afford to be “patient” about the future interest rate hike, citing a list of concerns including volatility in financial markets, slowing global growth and muted inflation pressures.

Investors are also waiting for further news on the Sino-U.S. trade talks, after China’s Commerce Ministry said in a statement that discussions with the U.S. this week were “extensive and detailed,” and that both sides agreed to continue to keep in close contact.         

Trading Ideas:
--Silver trading range for the day is 38934-39936.
--Silver pared gains as investors awaited remarks from Fed Jerome Powell amid expectations that the head of the central bank will reaffirm a pause in policy tightening.
--FOMC minutes: Many officials felt Fed could be patient on further hikes.
--Fed's Rosengren: Possible that Fed may need to cut rates, but that is 'not his view'

Courtesy: Kedia Commodities

Commodity Arrivals Rate
Mustard Oil 35 8600.00
Coconut Oil 1 18400.00
Arecanut 2.5 2400.00
Sugar 65 3252.00

More