Silver MCX Under Fresh Selling Support Key 36702

Silver MCX- neal bhai callGold Silver Reports — Technically Silver market is under fresh selling as market has witnessed gain in open interest by 5.17% to settled at 21885 while prices down 279 rupees.

MCX Silver is getting support Key 36702 and below same could see a test of 36440 level, And resistance is now likely to be seen at 37744, a move above could see prices testing 38120.  

Silver on MCX settled down -0.74% at 37342 by a strengthening dollar and rising U.S. bond yields while investors looked ahead to Federal Reserve minutes. The minutes showed the central bank was split on how inflation might affect the future pace of interest rate increases.

While rising demand for silver in two of the world’s largest consumers, China and India, since the beginning of this year is seen raising hopes of a better price performance for the metal. A precious metal and industrial metal at once, silver generally follows the footsteps of its more sought-after sibling, gold.

The first half of this year has been no different. In the initial months, silver prices rose two per cent on strong investment demand and in line with gold. The market came under pressure following the waning effect of most of the supportive factors, including interest rates and currency.

In other words, the Fed rate hike and firmer dollar have pressured the market down. Meanwhile the iShares Silver Trust and ETFS Physical Silver Shares are each up about 4% year-to-date. Some commodities market observers see silver as attractively valued right now, a scenario that could set the stage for the white metal to rally in the second half of the year.

Some commodities market observers see more upside coming for silver and the aforementioned exchange traded funds. Looking ahead, the ongoing negative interest rate environment, with European and Japanese central banks cutting benchmark rates deeper into the red to promote growth, could push investors toward precious metals as a more stable store of wealth.

Silver MCX Under Fresh Selling Support Key 36702 | Neal Bhai Reports | Gold Silver Reports 

Spread the love

Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

Leave a Comment