MCX Silver Support Level 38353, Buy on Dips Target 39444—40125

Gold Silver Reports – MCX Silver Support Level 38353, Buy on Dips Target 39444—40125 — Technically Silver market is under long liquidation as market has witnessed drop in open interest by 0.27% to settled at 18729 while prices down 98 rupees.

MCX Silver Tips and Reports

MCX Silver is getting support key at 38353 and below same could see a test of 38000 levels and resistance key is now likely to be seen at 39444, a move above could see prices testing 40125.     

Silver on MCX settled down 0.25% at 38553 as pressure continued after stronger-than-expected U.S. payrolls data. The dollar moved off lows after services data topped forecasts reaffirming investor expectation that bullish economic growth would strengthen the Federal Reserve’s case to raise rates more aggressively.

ISM non-manufacturing data for January showed an uptick to 59.9, beating expectations of 56.5. In a rising interest rate environment, investor appetite for bullion weakens as the opportunity cost of holding the precious metal increases relative to interest-bearing assets such as bonds.

The gold/silver ratio poked back over 80 again for the first time in nearly two years, although it returned just below this again early Monday. The ratio measures how many ounces of silver it takes to buy an ounce of gold, with a larger number meaning under performance by silver.

Read More: Gold Silver Boom Boom Comex Members Mint Money 24X7 – Goldman Neal Bhai Reports

The price of gold fell Friday after a strong US jobs report prompted a rise in US Treasury yields, thereby benefiting the US dollar and undercutting precious metals. Silver’s heavy losses on Friday are probably also attributable to technical selling given that silver dropped below the technically important 100 and 200-DMA.

Global financial markets will focus on this week’s Bank of England policy meeting, for further details on when the central bank plans to raise rates again. It will be a quiet week for the U.S. and the euro zone with only a handful of relatively unimportant data releases.  – Goldman Neal Bhai Reports

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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

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