Gold Silver Reports — Silver on MCX settled down -2.02% at 46072 on higher equities and as the dollar hit a four-month high following strong US economic data, which raised expectations that the Fed may raise rates before the end of the year.
While the dollar hit its highest for four months, still benefiting from data showing US hsg starts surged more than expected in June, underpinning a theme of strength in the US economy. The metal was also dragged lower by advancing European and U.S. equities, which increased investor appetite for risk.
On Wednesday, economic indicators showed that consumer confidence in the EU fell sharply by 1.8 in June to Minus-7.6, dropping to the lowest level since November, 2014. In the euro area, the DG ECFIN flash consumer confidence index declined by 0.7 from an upwardly revised Minus-7.2 to Minus-7.9. Also the Governing Council is widely expected to stand pat at Thursday’s meeting, amid a relative lack of data following the UK’s decision to leave the EU on June 24.
The ECB meeting comes days before the FOMC will convene for its two-day July meeting in the middle of next week. Since the Fed left short-term interest rates unchanged at its June FOMC meeting, participants have been largely split on the timing of its next rate hike, amid strong employment and housing figures. While the CME Group’s Fed Watch tool now sees a 41.6% chance of a 25bps hike in December, up from around 20% last week.
Now Investors are now waiting for the outcome of the ECB meeting tonight. Technically market is getting support at 45688 and below same could see a test of 45385 level, and resistance is now likely to be seen at 46717, a move above could see prices testing 47050. — Neal Bhai Reports