Gold Silver Reports — Technically Silver market is under fresh selling as market has witnessed gain in open interest by 6.83% to settled at 23164 while prices down 1221 rupees.
Silver MCX is getting support Key at 35010 and below same could see a test of 34820 level, And resistance Key is now likely to be seen at 36400, a move above could see prices testing 37333.
Silver prices slumped after data showed an improvement in the U.S. labor market, fuelling expectations that the Federal Reserve will keep to its plan to increase interest rates at least once more this year.
The Bureau of Labor Statistics reported, nonfarm payrolls grew by 222,000 in June, well above expectations of a 179,000 increase, but the unemployment rate fell to 4.4%, a notch above forecasts of 4.3%. Average hourly earnings were up 2.5 per cent year-over-year missing economists’ forecasts for a 2.6 per cent increase.
The latest batch of mostly upbeat jobs data, fuelled expectations that the Fed would continue with its plan to hike rates later this year, spurring an uptick in both the dollar and bond yields while decreasing demand for the precious metal.
The U.S. Federal Reserve is contemplating its efforts to normalize policy. In a report, the central bank forecast a gradual increase in interest rates and the imminent wind down of its balance sheet. The European Central Bank, meanwhile, has been signaling that it is getting ready to wind down its stimulus efforts after years of aggressive bond buying.
The collective shift in sentiment by central bankers has rocked bonds, yanking prices lower and sending global bond yields surging. That’s proven to be a negative factor for gold, which doesn’t offer a yield. — Neal Bhai Reports
