MX SILVER NEWS : 11.01.2017
Silver on MCX settled up 1% at 41096 amid jitters ahead of President-elect Donald Trump’s first news conference since his election victory on Wednesday. Bullion has been well-supported in recent sessions after minutes from the Federal Reserve’s December meeting unsettled investors’ expectations about the pace of future interest rate hikes. A delay in raising interest rates would be seen as positive for gold, a non-interest-bearing asset, and negative for the dollar. Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. The Fed had indicated in December that at least three rate increases were in the offing for 2017, according to a forecast of interest rates from members of the central bank, known as the dot-plot. However, traders remained unconvinced. The World Bank said global growth would accelerate slightly as recovering oil and commodity prices ease pressures on emerging-market commodity exporters and painful recessions in Brazil and Russia come to an end. Instead, markets are pricing in just two rate hikes during the course of this year. Global financial markets will continue to focus on key U.S. reports in the week ahead, with Friday’s retail sales data in the spotlight. In addition, there are a handful of Fed speakers on tap, including Chair Janet Yellen on Thursday, as traders look for more clues on the likelihood of higher interest rates later this year. Technically market is under short covering as market has witnessed drop in open interest by -0.18% to settled at 13507 while prices up 408 rupee, now Silver is getting support at 40661 and below same could see a test of 40227 level, And resistance is now likely to be seen at 41424, a move above could see prices testing 41753.
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Silver on MCX settled up 1% at 41096 amid jitters ahead of President-elect Donald Trump’s first news conference since his election victory on Wednesday. Bullion has been well-supported in recent sessions after minutes from the Federal Reserve’s December meeting unsettled investors’ expectations about the pace of future interest rate hikes. A delay in raising interest rates would be seen as positive for gold, a non-interest-bearing asset, and negative for the dollar. Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. The Fed had indicated in December that at least three rate increases were in the offing for 2017, according to a forecast of interest rates from members of the central bank, known as the dot-plot. However, traders remained unconvinced. The World Bank said global growth would accelerate slightly as recovering oil and commodity prices ease pressures on emerging-market commodity exporters and painful recessions in Brazil and Russia come to an end. Instead, markets are pricing in just two rate hikes during the course of this year. Global financial markets will continue to focus on key U.S. reports in the week ahead, with Friday’s retail sales data in the spotlight. In addition, there are a handful of Fed speakers on tap, including Chair Janet Yellen on Thursday, as traders look for more clues on the likelihood of higher interest rates later this year. Technically market is under short covering as market has witnessed drop in open interest by -0.18% to settled at 13507 while prices up 408 rupee, now Silver is getting support at 40661 and below same could see a test of 40227 level, And resistance is now likely to be seen at 41424, a move above could see prices testing 41753.
