Gold Silver Reports — Silver on MCX settled down -0.27% at 35986 fell slightly erasing some of its gains from the previous session’s surge, as investors traded cautiously.
◊ Sentiments improved after Fed minutes showed tension on rate hike views. The latest FOMC meeting showed Wednesday Kansas City Fed President Esther George had some support of her view another rate hike was appropriate from a couple non-voting members.
◊ The committee held steady the policy fed funds rate at 0.25% to 0.50% on a 9-1 vote with George dissenting from the decision preferring instead the committee raise the target range for the rate to 0.50% to 0.75%. “Most participants,” which includes all 17 board members and regional Fed presidents, agreed with the voting majority that it was appropriate to keep the fed funds rate where it has been since December when the FOMC raised rates for the first time since 2006. “A couple of participants, however, saw an increase in the target range to 1/2 to 3/4 percent as appropriate at this meeting,” the minutes said, “citing evidence that the economy was continuing to expand at a moderate rate despite developments abroad and earlier volatility in financial conditions, continued improvement in labor market conditions, the firming of inflation over recent months, and the apparent leveling-off of oil prices.”
◊ In their judgment, the minutes continued, “increasing the target range for the federal funds rate too gradually in the near term risked having to raise it quickly later, which could cause economic and financial strains at that time Technically market is getting support at 35732 and below same could see a test of 35370 level, and resistance is now likely to be seen at 36260, a move above could see prices testing 36630. — Neal Bhai Reports