SENSEX NIFTY
Feb 25, 2013, 06.04 PM IST | Source: Moneycontrol.com

Mecklai graph: Silver lining fading?

Mecklai graph of the day: Silver extended its losses after minutes from the Fed’s last meeting revealed "many" FOMC members were concerned about the risks of further asset purchases.

Mecklai graph of the day: Silver lining fading?

Silver extended its losses after minutes from the Fed’s last meeting revealed "many" (an upgrade from "several") FOMC members were concerned about the risks of further asset purchases. In addition, a "number" of them suggested that the FOMC could "taper or end" QE before a substantial improvement in the labour market occurred. As expected, the dollar shot higher following these remarks and this put further downward pressure on all QE-inflated-assets. But the sell-off in Silver looked overdone and today price ($29) managed to bounce slightly as the sellers covered more of their short positions and the buyers slowly returned. Long term Silver bulls remain hopeful that price would finish the week above $26, just like the previous bearish phases in 2011 and 2012. There is also a long-term trend line coming into play around the current levels which may offer additional support. But if this bullish scenario does not come to fruition then the bears will have $21 on their radar. Silver found support around $28.25/30, which was the point of origin of breakout we saw in the summer.

Below graph shows movement of Silver since Jan 2013

 

 

 

 

 

 

 

 

 

 

 

 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

ADS BY GOOGLE

video of the day

See mild mkt pullback; like public sector banks: HDFC Sec

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.