Gold Silver Reports — Technically silver market is under fresh selling and getting support at 41700 and below same could see a test of 41510 level, And resistance is now likely to be seen at 42300, a move above could see prices testing 42730.
Silver on MCX settled down 1.15% at 41943 tracking weakness from Comex Silver which was down by 1.9 percent in yesterday session settled at $17.44 an ounce, the lowest since Feb. 6 as the dollar strengthened and expectations for a U.S. interest rate hike this month weighed, though moves were muted ahead of U.S. payroll data this week.
The precious metal has fallen in five out of the last six sessions as expectations for the Federal Reserve to push ahead with a U.S. rate increase this month ramped up. Markets dramatically adjusted expectations for U.S. interest rate hikes this year following hawkish comments from several top Fed officials last week, including Chair Janet Yellen.
Traders are pricing in around a 90% chance of a hike at the Fed’s March 14-15 meeting, odds of a second rate hike in September currently stand at 67%, while a third hike in December is priced in at 53%, aligning market expectations with the Fed’s current forecast for three rate hikes in 2017.
In economic data, Eurozone fourth quarter GDP growth was confirmed at 0.4% on Tuesday, unchanged from the prior estimate. In annualized terms, the euro area economy expanded 1.7%, official data showed.
The European Central Bank (ECB) will deliver its March interest rate decision on Thursday. Investors are now awaiting non-farm payrolls data for February on Friday, seen as an important barometer of the U.S. economy. — Neal Bhai Reports