MCX SILVER NEWS : 09.01.2017
Silver on MCX settled down -0.26% at 40342 as strength in the U.S. dollar and equities in the wake of the monthly domestic jobs report dulled investment demand for the precious metal. Prices, however, gained for the week, buoyed by uncertainty surrounding the pace of interest-rate increases by the Federal Reserve. The Labor Department reported that 156,000 jobs were added in December to cap off the sixth straight year in which the economy created more than 2 million new jobs. An increase in wage growth, however, provided support for the argument that the employment market remains on a solid footing. Average hourly wages jumped 0.4% to $26 last month, while hourly pay increased 2.9% from December 2015 to December 2016, marking the fastest 12-month increase since a recovery that began in mid-2009. Minutes from the Fed's December policy meeting showed most officials thought the U.S. economy could grow more quickly because of tax cuts and infrastructure spending under President-elect Donald Trump’s incoming administration. At the same time, policymakers "emphasized their considerable uncertainty" about future economic policy changes. The minutes also showed that policymakers assumed that Trump's promises of fiscal stimulus could, if delivered, spur inflation which would in turn lead to a faster pace of rate increases this year. The rising dollar and the environment of higher interest rates were always going to be headwinds but not insurmountable ones if investors were looking for safety. Technically market is under fresh selling as market has witnessed gain in open interest by 0.85% to settled at 13177 while prices down -106 rupee, now Silver is getting support at 39850 and below same could see a test of 39359 level, And resistance is now likely to be seen at 40685, a move above could see prices testing 41029.
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