Silver firmed on speculation that central banks may be set to launch more bullion-friendly stimulus measures to boost growth, though mixed U.S. data that dampened expectations for imminent Federal Reserve action kept prices in a range. Further monetary easing would benefit gold by boosting liquidity and maintaining pressure on long-term interest rates, keeping the opportunity cost of holding bullion at rock bottom, as well as fuelling inflation fears and weighing on the dollar. However, softer-than-expected inflation data reassured investors that price pressures would not prevent the Fed from launching more QE if a more negative view of growth emerges. The U.S. Department of Labor said the number of individuals filing for initial jobless benefits rose by 2,000 to a seasonally adjusted 366,000 last week, compared to expectations for an increase of 1,000 to 365,000. Moves in the bullion prices this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system. Market players are already beginning to focus on an annual meeting of economists and central bankers in Jackson Hole, Wyoming, at the end of August. Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge. Now technically market is trading in the range as RSI for 18days is currently indicating 50.33, where as 50DMA is at 53419.92 and silver is trading above the same and getting support at 53492 and below could see a test of 53233 level, And resistance is now likely to be seen at 53902, a move above could see prices testing 54053.
Trading Ideas:
Silver trading range for the day is 53233-54053.
Silver firmed on speculation that central banks may be set to launch more bullion-friendly stimulus measures
Softer than expected inflation data reassured investors that price pressures would not prevent Fed from launching more QE
Expectations of monetary stimulus tend to benefit prices, as bullion is seen as safe store of value.
