Gold Silver Reports – Silver MCX Under Short Covering Rally; Drop in Open Interest — Now MCX Silver is getting support key at 38001 and below same could see a test of 37404 level, And resistance key is now likely to be seen at 39119, a move above could see prices testing 39444.
Silver MCX Under Short Covering Rally
Silver on MCX settled up 1.12% at 38672 on short covering tracking Comex Silver prices which yesterday settled up 1.9 percent at $16.86 an ounce after hitting a one-week high of $16.98 rebounding from early losses that followed stronger-than-expected U.S. inflation data, as the dollar surrendered gains and equities swung higher.
The dollar initially rose after the U.S. Labor Department report showed U.S. consumer prices increased more than expected in January, and traders bet the U.S. Federal Reserve would boost interest rates faster than previously forecast.
However, softer-than-forecast retail sales data and an immediate pullback in equities markets sparked concern that the Fed would struggle to raise rates quickly enough to offset inflation pressures.
Earlier US data showed retail sales fell 0.3% in January, missing expectations of a 0.2% rise, and compared to December’s 0.4% rise, while core sales., excluding automobiles, were unchanged last month, compared to a 0.4% rise in December, while analysts expected a 0.5% rise.
While US consumer prices rose 0.5% m/m in January, beating expectations of a 0.3% rise, and compared to December’s 0.1% increase, while core prices, excluding food and fuel, rose 0.3% m/m, beating expectations of a 0.2% rise, and same as December.
Strong inflation data stoked expectations of four Fed rate hikes this year, however expectations reversed quickly after data showed retail sales fell last month, raising questions about the strength of the US consumer, and throwing the number of expected rate hikes this year into the air again. – Goldman Neal Bhai Reports
