Gold Silver Reports (GSR) – MCX Silver Under Fresh Selling Trading Zone Between 37600—39200 – Silver on MCX settled up 1.85% at 39030 boosted by the softer dollar and in escalation in trade tensions between the U.S. and China, which underpinned safe haven demand. Renewed safe-haven demand comes amid investor concerns over escalating US-China trade tensions after Beijing unveiled retaliatory tariffs on Monday overnight.
MCX Silver is getting support key at 38210 and below same could see a test of 37600 level, And resistance key is now likely to be seen at 38910, a move above could see prices testing 39300.
China announced that it is increasing tariffs by up to 25% on certain U.S. imports in response to U.S. duties on imports of aluminum and steel. China imposed tariffs starting Monday on US food imports including pork, fruit, nuts and wine of up to 25% as a response to the Trump administration’s new tariffs on steel and aluminium imports.
Technically Silver market is under short covering as market has witnessed drop in open interest by 21.74% to settled at 17035 while prices up 708 rupees.
Investor fears over a tit-for-tat trade could intensify this week as the Trump administration will impose tariffs on $50 billion to $60 billion worth of annual imports on products benefiting from Beijing’s “Made in China 2025” industrial development program, Reuters reported, citing administration officials.
US data showed the ISM manufacturing PMI slowed down to 59.3 in March from 60.8 in February, missing expectations of 60.1. ISM manufacturing prices rose to 78.1 from 74.2, beating expectations of 72.5, while construction spending rose 0.1% in February, below expectations of a 0.4% rise.
Hedge funds and money managers increased their net short position in silver futures and options contracts, CFTC said. Silver speculators raised their net short position by 18,984 contracts to 35,172 contracts, according to the data.