Silver MCX Under Selling Zone, Support Key at 38718

Silver MCX Under Selling Zone
Silver MCX

Gold Silver Reports – Technically Silver market is under fresh selling as market has witnessed gain in open interest by 2.49% to settled at 17842 while prices down -198 rupees.

Silver MCX Under Selling Zone

Silver MCX is getting support key at 38718 and below same could see a test of 38584 level, And resistance key is now likely to be seen at 39110, a move above could see prices testing 39374.

Silver prices fell as the dollar strengthened against the euro and as investors continued to bet on further rate hikes by the Federal Reserve this year. Investors weighed the prospect of global monetary policy tightening after the Bank of Japan trimmed its bond purchases.

Also supporting the dollar strength was a drop in safe-haven demand as global equity markets continued to top multi-year highs amid ongoing risk-on sentiment. Despite the prospect of global monetary tightening from the Federal Reserve, Bank of England and Bank of Canada this year, BofA Merrill Lynch said it expects gold prices to rise to $1,350 an ounce by the third quarter of the year.

The Bank of Canada could raise rates as soon as next week, Action Economics said, as the recent swathe of positive labor market data may force the central bank’s hand on monetary policy tightening.

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US data showed the Jolts Job Openings fell to 5.88 million in November from 5.93 million in October, missing expectations of 6.05M, while last Friday, data showed the economy added 250 thousand new private sector jobs in December, beating expectations of 191K, and up from 185K in November.

US unemployment claims rose to 250 thousand in the week ending December 30 from 245K in the previous reading, missing expectations of a dip to 241K.