Saturday, 7 January 2012

India silver to remain higher on global cues

Last Updated : January 04, 2012 13:55

Silver futures surged by almost +3.35 to settled at 53109 after Iran announced progress in its nuclear program and the U.S. dollar plunged.

Weakness in the U.S. dollar added to the bullish precious metal price environment. The Institute for Supply Management's U.S. factory index advanced more than expected, as well as Chinese and Indian metrics, providing bullish signals for economic growth.

The Iranian Student News Agency reported that Iran tested its first nuclear fuel rod adding to oil supply fears, while the nation warned the U.S. against sending an aircraft carrier to the Persian Gulf. Adam Klopfenstein of Archer Financial explained to Bloomberg.? "Fear trade is back because of Iran.

Also, we are seeing buying across commodities because of the weaker dollar." For much of the last year, investor's typical reaction to bad news from Europe was to buy gold, as its boosts safe haven appeal of the precious metal, but that relationship has unraveled recently.

Instead, Silver futures have moved largely in line with other commodities and risk assets over the past month, with investors preferring the relative safety of the U.S. dollar. Now technically market is trading in the range as RSI for 18days is currently indicating 44.96, where as 50DMA is at 55782 and Silver is trading below the same and getting support at 51901 and below could see a test of 50694 level, And resistance is now likely to be seen at 53908, a move above could see prices testing 54708.

Trading Ideas:

Silver trading range is 50694-54708.
Silver futures surged more that 3% after Iran announced progress in its nuclear program and the U.S. dollar plunged.??
Dollar weakness generally lifts commodity prices, as it increases their appeal as an alternative asset and makes dollar cheaper.??
Iran tested its first nuclear fuel rod adding to oil supply fears, while the nation warned the US against sending an aircraft.????

Courtesy: Kedia Commodities

If you want to have a free trial on Indian commodities or equity markets visit tips.commodityonline.com

MCX GASOLINE 24 February 2012 contract was trading at Rs 136.5 , up Rs. 1.35 . What's your view on it?

Source: http://www.commodityonline.com/futures-trading/commoditytrends/India-silver-to-remain-higher-on-global-cues-10565.html

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