Silver yesterday settled down -0.5% at 41760 as rupee strengthened slightly, recovering from its biggest weekly fall in nearly two years as weaker-than-expected US jobs data boosted Asian risk currencies, while dollar selling by foreign banks also helped. While on COMEX Silver held steady on Monday, retaining the previous sessions gains after softer-than-expected US nonfarm payroll data eased fears of an imminent scale-back of the Fed's stimulus measures. Silver fell on Friday after encouraging US GDP and factory activity data, but rebounded sharply after the jobs report to end the session higher. A top Fed official said on Friday the US economy was improving modestly but needs to gather more steam, while cautioning that the central bank ought to wait for more evidence of an upturn before tapering bond purchases. Market players now looked ahead to the ISM's non-manufacturing index later Monday to further gauge the strength of the US economy. Investors have closely been looking out for US data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. Any improvement in the US economy was likely to reinforce the view that the Fed will begin to taper its bond purchase program in the coming months. Silver prices are on track to post a loss of almost 34% on the year, amid speculation the Fed will start to unwind its bond purchasing program in the coming months. Technically market is getting support at 41401 and below same could see a test of 41043 level, And resistance is now likely to be seen at 42170, a move above could see prices testing 42581.
Trading Ideas:
Silver trading range for the day is 41043-42581.
Silver dropped as dollar steadied after mixed U. S. data last week left investors less sure the Fed would start to scale back its stimulus next month.
ISM reported that its non-manufacturing purchasing managers' index rose to 56.0 in July from a three year low of 52.2 in June.
The Fed is nearer to dialling back its massive bond-buying programme after the unemployment rate dropped last month
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