Silver settled down -1.49% at 41717 as pressure seen after Indian rupee strengthened to its highest level in about 10 months on Thursday, while also posting its biggest single-day gain in nearly three weeks on the back of sustained dollar inflows into domestic shares ahead of election results.
While Comex Silver edged lower as investors looked ahead to key U.S. data later in the session for further indications on the strength of the economy and the need for stimulus. A mixed bag of data that dampened Wall Street and currency markets failed to convince metals markets that the Fed will rethink the pace at which it dismantles its monthly bond-buying program.
The Federal Reserve Bank of Philadelphia said its manufacturing index ticked down to 15.4 this month from 16.6 in April. The data came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 10 fell by 24k to 297k from the previous week’s revised total of 321k.
On Thursday, however, the PPI came in much better than expected, and the consumer inflation rate's inability to maintain the same pace as its wholesale counterpart softened the dollar somewhat by stoking concerns surrounding the strength of U.S. demand for goods and services.
The U.S. PPI increased by 0.6% last month, beating forecasts for a 0.2% gain, after rising 0.5% in March. The core PPI advanced 0.5% last month, after rising 0.6% in March. The Fed views core prices as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Technically market is under fresh selling and getting support at 41412 and below same could see a test of 41107 level, and resistance is now likely to be seen at 42185, a move above could see prices testing 42653.
Trading Ideas:
--Silver trading range for the day is 41107-42653.
--Silver dropped after a string of mixed U.S. economic indicators came but strong enough to convince investors that Fed remains on track to wind down stimulus measures
--The number of individuals filing for initial jobless benefits fell by 24,000 to 297,000 from the previous week’s revised total of 321,000.
--The Fed is currently buying $45 billion in Treasury and mortgage debt a month to suppress long-term interest rates to kick-start the economy.
www.punjiniveshonline.com
While Comex Silver edged lower as investors looked ahead to key U.S. data later in the session for further indications on the strength of the economy and the need for stimulus. A mixed bag of data that dampened Wall Street and currency markets failed to convince metals markets that the Fed will rethink the pace at which it dismantles its monthly bond-buying program.
The Federal Reserve Bank of Philadelphia said its manufacturing index ticked down to 15.4 this month from 16.6 in April. The data came after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 10 fell by 24k to 297k from the previous week’s revised total of 321k.
On Thursday, however, the PPI came in much better than expected, and the consumer inflation rate's inability to maintain the same pace as its wholesale counterpart softened the dollar somewhat by stoking concerns surrounding the strength of U.S. demand for goods and services.
The U.S. PPI increased by 0.6% last month, beating forecasts for a 0.2% gain, after rising 0.5% in March. The core PPI advanced 0.5% last month, after rising 0.6% in March. The Fed views core prices as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Technically market is under fresh selling and getting support at 41412 and below same could see a test of 41107 level, and resistance is now likely to be seen at 42185, a move above could see prices testing 42653.
Trading Ideas:
--Silver trading range for the day is 41107-42653.
--Silver dropped after a string of mixed U.S. economic indicators came but strong enough to convince investors that Fed remains on track to wind down stimulus measures
--The number of individuals filing for initial jobless benefits fell by 24,000 to 297,000 from the previous week’s revised total of 321,000.
--The Fed is currently buying $45 billion in Treasury and mortgage debt a month to suppress long-term interest rates to kick-start the economy.
www.punjiniveshonline.com
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