Silver MCX Day Range 36570 to 37890; Silver Market Under Long Liquidation

Silver MCX Day Range 36570 to 37890; Silver Market Under Long Liquidation

Gold Silver Reports – Silver settled down -0.06% at 37207 down as prices struggled for direction swinging between small gains and losses as investors continued to monitor movements in oil and global equity markets.

While support seen as metal traders reacted to a mixed batch of U.S. economic data and a major sell-off among equity markets in China ahead of the start of the Group of 20 summit in Shanghai. In overnight the Shanghai Composite Index tumbled more than 6%, amid tighter liquidity requirements, while the offshore yuan moved lower for the fifth consecutive session.

It came as the People’s Bank of China broadened reserve constraints for a number of financial institution, which reportedly received more favorable treatment from the Chinese central bank in recent months. As a result, the overnight repurchase rate surged 14 basis points, its highest amount In two weeks, to 2.11%. The decline in China’s benchmark index marked the steepest one-day fall in a month, pushing year-to-date losses to 22%. China is the world’s largest producer of gold and the second-largest consumer of the precious metal behind India.

Bullion prices inched lower after the U.S. Commerce Department reported that durable goods orders surged by 4.9% in January, their strongest pace in 10 months, erasing losses from the previous month when they slumped 4.6%. More importantly, core capital goods orders, a key reading, soared by 3.9%, representing its strongest monthly performance since June, 2014. Despite an upwardly revised total, core capital goods still fell 3.7% in December. Technically market is under long liquidation as market has witnessed drop in open interest by -4.6% to settled at 7760, now Silver is getting support at 36896 and below same could see a test of 36586 level, and resistance is now likely to be seen at 37480, a move above could see prices testing 37754. – Neal Bhai Reports

Trading Intraday Range:

⊕ Silver MCX trading Intraday Range 36570↔37890

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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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