MCX Silver Dec 2016 : 08.09.2016
Silver trading range for the day is 46526-47792
Silver dropped on profit booking as investors pared expectations for how aggressively the
Federal Reserve would move to increase interest rates.
Raising U.S. interest rates makes sense now that the economy is at full employment and
"within sight" of the central bank's 2-percent inflation goal, Fed’s John Williams said.
Holdings at ishares silver trust gained by 0.32% i.e. 35.44 tonnes to 11281.84 tonnes
from 11246.40 tonnes.
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Silver on MCX settled down -1.25% at 47013 dropped after touching a more than three-week high of 47694 as trader booked profit after it soared by the most in over two months in the previous session on economic data
that weakened the case for an imminent U.S. rate hike. While US services sector activity slowed to a 6-1/2-year low in August amid sharp drops in production and orders, pointing to slower economic growth that further
diminished prospects for a near-term interest rate increase. Meanwhile, US non-manufacturing new orders index for August fell to their lowest since December 2013. The spate of weak data has weakened the case for a US
rate hike immediately, boosting silver most, which is highly exposed to interest rates and returns on other assets. Rising rates lift the opportunity cost of holding non-yielding bullion. Bullion have benefited recently from a
weaker dollar. The dollar came under heavy selling pressure Tuesday after the ISM Non-Manufacturing Index showed a drop to 51.4, the lowest reading in the Index since February 2010. The weak report reflects poorly on
the overall outlook for the U.S. economy. According to CME data, Fed Funds futures show investors assign a 15% likelihood of the Fed raising rates at the September 20-21 meeting. The dollar, however, became heavily
oversold as a result of Tuesday’s sell-off, signaling the potential for the bounce that took place today. Technically market is getting support at 46770 and below same could see a test of 46526 level, And resistance is now
likely to be seen at 47403, a move above could see prices testing 47792.
Silver trading range for the day is 46526-47792
Silver dropped on profit booking as investors pared expectations for how aggressively the
Federal Reserve would move to increase interest rates.
Raising U.S. interest rates makes sense now that the economy is at full employment and
"within sight" of the central bank's 2-percent inflation goal, Fed’s John Williams said.
Holdings at ishares silver trust gained by 0.32% i.e. 35.44 tonnes to 11281.84 tonnes
from 11246.40 tonnes.
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Silver on MCX settled down -1.25% at 47013 dropped after touching a more than three-week high of 47694 as trader booked profit after it soared by the most in over two months in the previous session on economic data
that weakened the case for an imminent U.S. rate hike. While US services sector activity slowed to a 6-1/2-year low in August amid sharp drops in production and orders, pointing to slower economic growth that further
diminished prospects for a near-term interest rate increase. Meanwhile, US non-manufacturing new orders index for August fell to their lowest since December 2013. The spate of weak data has weakened the case for a US
rate hike immediately, boosting silver most, which is highly exposed to interest rates and returns on other assets. Rising rates lift the opportunity cost of holding non-yielding bullion. Bullion have benefited recently from a
weaker dollar. The dollar came under heavy selling pressure Tuesday after the ISM Non-Manufacturing Index showed a drop to 51.4, the lowest reading in the Index since February 2010. The weak report reflects poorly on
the overall outlook for the U.S. economy. According to CME data, Fed Funds futures show investors assign a 15% likelihood of the Fed raising rates at the September 20-21 meeting. The dollar, however, became heavily
oversold as a result of Tuesday’s sell-off, signaling the potential for the bounce that took place today. Technically market is getting support at 46770 and below same could see a test of 46526 level, And resistance is now
likely to be seen at 47403, a move above could see prices testing 47792.
