Gold Silver Reports – Technically Silver market is under short covering as market has witnessed drop in open interest by 1.34% to settled at 23340 while prices up 238 rupees.
Silver price MCX is getting support key at 36660 and below same could see a test of 36480 levels and resistance key is now likely to be seen at 37618, a move above could see prices testing 38100.
Silver on MCX settled up 0.65% at 36967 as prices bounced off lows as the U.S. dollar weakened after tepid U.S. inflation data and ahead of the Federal Reserve’s policy decision.
The Federal Reserve approved its third rate hike of 2017 and forecasts further rate hikes despite growing concerns over the slow pace of inflation. Fed officials also expressed optimism in the economy, hiking their projection for economic growth in 2017 to 2.5%, while growth in 2018 was expected to rise to 2.5%, a 0.4% increase from the Fed’s September projections.
The report raised investor expectations for ongoing bullish economic growth, lifting sentiment on risker assets like equities. In an early verdict on the tax overhaul, Fed policymakers judged it would boost the economy next year but leave no lasting impact, with the long-run potential growth rate stalled at 1.8 percent.
Also supporting an uptick were comments from Trump, who said he hopes to sign the tax bill “in a very short period of time”, and stressed that it was “very important for the country” that Congress vote on it next week.
Overnight, prices steadied as the dollar came under pressure following the release of timid inflation data which dampened investor expectations for a faster pace of rate hikes next year. The Labor Department said on Wednesday its Consumer Price index rose 0.4% last month.
In the twelve months through November, core-inflation, however, undershot expectations rising just 1.7%. – Neal Bhai Reports