Silver on MCX settled up 0.07% at 45638 recovered from day’s low as investors digested the release of a host of U.S. economic data. Data released earlier showed that retail sales in the U.S. declined for the first time in five months, fueling concerns over the economic outlook. The Commerce Department said that retail sales dropped 0.3% from the prior month, compared to the forecast for a decline of 0.1%. Core retail sales, which excludes automobile sales, unexpectedly fell by a seasonally adjusted 0.1% in August, compared to forecasts for an advance of 0.2%.
A separate report released at the same time showed that wholesale prices were flat in August, mostly because of sharp declines in the cost of food and gasoline. Meanwhile, the number of people who filed for unemployment assistance in the U.S. last week rose less than expected, remaining in territory associated with a healthy labor market. The number of individuals filing for initial jobless benefits last week increased by 1,000 to 260,000 from the previous week’s total of 259,000, the Labor Department said. In contrast, the Empire State manufacturing index, which measures conditions in the New York area, remained in contraction territory, inching up to negative 2.0 in September from negative 4.2 in August.
The disappointing data lowered the potential for the Fed to raise rates at its meeting later this month. Technically market is getting support at 45255 and below same could see a test of 44872 level, And resistance is now likely to be seen at 46046, a move above could see prices testing 46454.
--Silver trading range for the day is 44872-46454.
--Silver recovered to end with gains after prices slipped as the dollar and equities edged upwards, curbing the metal's demand ahead of Fed meeting.
--The Commerce Department said that retail sales dropped 0.3% from the prior month, compared to the forecast for a decline of 0.1%.
--The number of people who filed for unemployment assistance in the U.S. last week rose less than expected.
Courtesy: Kedia Commodities