Silver yesterday settled with a marginal gain of Rs.81.00 to settled at 52923 as support seen from the rupee weakness overall on domestic side since july month started we have seen market was trading in the range 52000-53200 and look to trade in the same rate. Yesterday Silver futures on Comex exchange had dropped by nearly 1% to settled at $27.042 an ounce, the biggest fall since July 10 as increased Spanish worries that the nation will require a full scale sovereign debt bailout and fresh concerns over a Greek exit from the euro zone triggered safe haven greenback buying. Powering the US dollar and depressing gold prices, the yield on Spanish 10-year bonds rose to a record 7.57%, well above the 7% threshold widely considered unsustainable in the long term, amid growing fears that Spain will need a full bailout after the state of Murcia followed Valencia in requesting financial aid from Madrid over the weekend. Meanwhile, fears over a Greek exit from the euro zone resurfaced, amid worries whether Athens can meet the conditions of its international bailout ahead of a meeting with the Troika. The news prompted investors to shun riskier assets, such as stocks and commodities, and flock to traditional safe haven assets like the dollar and US Treasuries. Now technically market is getting support at 52593 and below could see a test of 52264 level, And resistance is now likely to be seen at 53161, a move above could see prices testing 53400.
Trading Ideas:
Silver trading range for the day is 52264-53400.
Silver fell as increased Spanish worries that the nation will require a full scale sovereign debt bailout.
Powering US dollar and depressing gold prices, the yield on Spanish 10-year bonds rose to record 7.57%
Holdings at ishares silver trust gained by 12.07 tonnes to 9708.78 tonnes
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