MCX SILVER NEWS : 04.01.2017
Silver on MCX settled up 2.9% at 40270 as bargain hunting seen in the markets and short covering in the futures markets were featured. A sharp rise in the U.S. dollar index overnight did limit buying interest in bullion in some morning trades but when the dollar index backed well off its daily high the gold and silver buyers stepped in. At its December meeting the Fed raised interest rates for the first time in a year and forecast as many as three hikes in 2017, making the tone of the discussion of high interest to markets. Underlying silver demand held firm and there was a significant dollar reversal late which triggered firm demand for silver with an advance to the $16.50 area. In economic data, China’s manufacturing sector expanded at a faster pace in December, thanks to stronger production and new orders. The Markit/Caixin manufacturing purchasing managers’ index (PMI) rose one point to 51.9 last month, on a scale where 50 separates expansion and contraction. Looking ahead, investors are bracing for a deluge of market-moving events beginning on Wednesday with the release of the December 13-14 Federal Open Market Committee (FOMC) meeting minutes. The Fed raised interest rates last month and signaled a faster pace of tightening over the next two years. On Friday, the Labor Department will report on December nonfarm payrolls, arguably the most closely followed economic calendar event of the month. The US economy is said to have added 175,000 workers in December, according to a median estimate of economists. Hourly wages are forecast to have risen 0.3% from November. Technically now Silver is getting support at 39490 and below same could see a test of 38710 level, And resistance is now likely to be seen at 40810, a move above could see prices testing 41350.
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