Silver Tips

Silver futures on COMEX are quoting up for a second straight session, starting the New Year on a song as good demand has emerged in precious metals complex. A reprieve on the US fiscal cliff boosted the sentiments for risky assets and bullion metals rallied alongside as a weak turn in US dollar kept the buying on. The commodity quotes at $30.59, up 3.6 cents or 1.20% on the day.

Yesterday, the US House of Representatives has passed legislation to avert big income tax increases on most Americans and prevent large cuts in spending for the Pentagon and other government programs. The measure, brought to the House floor less than 24 hours after its passage in the Senate, passed 257-167, with 85 Republicans joining 172 Democrats in voting to allow income taxes to rise for the first time in two decades, in this case for Americans earning more than $400,000 for individuals, or $450,000 for couples.

COMEX Silver had slumped to a four month low under $30 per ounce in the last month but steady buying has been a perennial feature of the trade thereafter. The markets are also looking out for the Semiconductor Industry Association's latest global sales report. The report presents three-month moving average of global semiconductor sales activity and has turned out to be a useful too to measure silver industrial demand.

MCX Silver futures for March 2012 are trading at Rs 58168, up Rs 250 per kg or 0.43% on the day. The open interest in the counter is up by 2% on the day. Prices had dropped well under Rs 58000 in last session but seem to be charting a decent recovery now.

Silver Tips

Silver cracked heavily in the latter half of the week mirroring the weakness in Gold. Silver too eventually ended with a loss of over 3 per cent.

Silver had managed to sustain above the Rs 63,200-support level mentioned last week in the initial part of the week. However, once that was taken off there was no stopping the white metal as it eventually tumbled to the lower end of the target of Rs 61,000-odd level also mentioned last week.

The daily charts indicate that the white metal may get considerable support around Rs 60,800-odd levels - which is the 50-day moving average for the December contract. The corresponding key level for the March futures should be around Rs 62,650.

Break of Rs 62,650 can further weaken the white metal for downside target of sub-Rs 60,000-odd levels.

As per the weekly Fibonacci charts, Silver MCX March futures may face resistance around Rs 64,550-64,925-65,300, while seek support around Rs 62,150-61,780-61,400.

The corresponding key support and resistance level for Silver Micro February futures are as follows. Support at Rs 62,180-61,800-61,440, while resistance around Rs 64,570-64,940-65,315.

Silver Tips

Silver, as expected, logged smart gains in the week under review. The white metal soared over 4 per cent to Rs 63,633. It may be recalled that in the last two weekly outlooks we had given a target of Rs 64,500 to Rs 66,000 for the December Silver futures.

With the expiry nearing, one can at least bet on a target of Rs 64,500 for the Silver December futures in the next week. The momentum oscillators continue to remain positive hence the March futures may log solid gains.

Given the sharp near support levels are at significantly lower levels. One should refer to Rs 62,300 as the first key support on the December futures, below which Silver can slide to Rs 61,000-odd levels.

As per the weekly Fibonacci charts, Silver MCX March futures may face resistance around Rs 66,465-66,800-67,135, while seek support around Rs 64,315-63,985-63,645.

The corresponding key support and resistance level for Silver Micro February futures are as follows. Support at Rs 64,345-64,000-63,670, while resistance around Rs 66,500-66,840-67,175.

Silver Tips

Bullion metals ended lower at Comex on Tuesday, 27 November 2012. Gold prices ended lower for second straight day as the dollar headed up and a sort of debt deal was reached at Greece. Upbeat US data also took some shine away.

Gold for December delivery fell $7.3 (0.4%) to settle at $1,742.3 an ounce on the Comex division of the New York Mercantile Exchange on Tuesday.

On Tuesday, December silver fell 16 cents, or 0.5%, to settle at $33.98 an ounce.

In overnight trading, the European stock markets rallied only modestly on news that Euro zone leaders meeting in Brussels agreed late Monday to disburse fresh bailout funds to cash-starved Greece. Most market watchers had reckoned EU leaders would grant new monies to Greece. The world market place showed no significant reaction to the as-expected news on Greece.

A meeting to discuss Greece's finances wrapped up early Tuesday with Greece's institutional lenders reaching a deal to pave the way for Athens to receive almost 44 billion euros (almost $57 billion) of financial aid, while bringing its debt down to a sustainable level. The deal is expected to trigger another aid payment for the debt-struck country.

A heavy slate of U.S. economic data released Tuesday did show generally better-than-expected readings overall, and that put modest upside pressure on the U.S. dollar index, which in turn helped push gold and silver prices to their daily lows.

The dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.2% on Tuesday. The Euro currency also was initially supported on the Greece news but could not hold those gains as the day wore on.

In today's economic news at Wall Street, Consumer confidence rose in November to its best reading in more than four years. The latest consumer confidence reading for November came in at 73.7, while market expected a reading of 73.0. The Conference Board said its consumer confidence index rose to 73.7 in November from 73.1 in October. That's above the 72.2 level forecast. The October reading was upwardly revised from 72.2.

Separately, the September Housing Price Index from the FHFA increased by 1.1%, which follows a 0.7% increase observed during the prior month. Also, the September Case-Shiller 20-city Home Price Index rose by 3.0%, while a 3.1% increase had been expected. This followed the previous month's increase of 2.0%.

Durable goods orders were unchanged in October, which was better than the 0.4% decrease that had been expected. Excluding transportation related items, durable goods orders increased in October by 1.5%, which was better than the 0.4% decrease that had been broadly anticipated. Prior month's reading was revised down to reflect an increase of 1.7%.

Traders and investors are also focused on the negotiations among U.S. lawmakers and President Obama regarding the so-called “fiscal cliff” tax increases and spending cuts that are approaching.

At the MCX, gold prices for February delivery closed lower by Rs 149 (0.45%) at Rs 32,594 per ten grams. Prices rose to a high of Rs 32,825 per 10 grams and fell to a low of Rs 32,550 per 10 grams during the day's trading.

At the MCX, silver prices for December delivery closed lower by Rs 198 (0.31%) at Rs 63,536/Kg. Prices opened at Rs 63,877/kg and fell to a low of Rs 63,361/Kg during the day's trading.

Silver Tips

Gold continues to edge higher on the daily charts as technical factors continue to support the up move. The near term support for Gold has now moved up to around Rs 31,700-odd levels.

Most of the momentum oscillators continue to remain in buy mode for Gold. Hence, any dip should be looked as a buying opportunity, with a stop at Rs 31,680.

The weekly charts, indicate an upside target of Rs 32,500 for the Gold.

For today, the Gold MCX December futures may face resistance around Rs 31,865-31,880-31,900. On the downside, Gold MCX may seek support around Rs 31,760-31,745-31,730.

The corresponding key levels for Gold Mini December futures are as follows - support at Rs 31,770-31,755-31,740, while face resistance around Rs 31,875-31,890-31,910.

MCX Silver Tips

Silver Holds more Promise on Chinese Buying:

A Chinese survey of purchasing managers pointed to a modest recovery in October. Refined Copper imports increased by 17% for the month and 7% year-on-year as a combination of improved sentiment and a pickup in financing activity drove increased buying. There was a shocking increase in refined Zinc imports, to the highest level seen since May 2009 at 73,000 tons. Silver demand in China, the world’s second-largest user, may jump as much as 10% next year to a record as investors look to preserve wealth & consumption may climb to as much as 7,700 metric tons. About 33% of the country’s demand comes from jewelry and coins, with the rest from industrial use in photography, solar and electrical appliances. A recovery in the solar industry may add to Silver Demand. The government is targeting 21 Giga-watts of solar-power installations by 2015 after installing 2.6 Giga-watts in 2011, according to Bloomberg New Energy Finance. Chinese investors are buying more silver as the second- largest economy slowed for a seventh quarter. Chinese investors want hard assets such as silver, especially when it’s cheaper than gold and requires less funding. Many producers and investors have hoarded the precious metal in the form of ingots or un-wrought Silver. Silver rose 53% in the Federal Reserve’s first round of quantitative easing, or QE, from December 2008 through March 2010, twice as much as gold, and 24% during the second phase ending in June 2011, three times as much.

Gold Silver News

Gold traded close to the lowest level in more than a week. Comex Gold prices ended with moderate losses yesterday, on more profit taking and technical consolidation on the charts. A stronger US Dollar index has also lent selling pressure to Gold and Silver early this week. Gold and Silver yet are in Bullish zone with downsides seemingly limited amid prompt bottom fishing. Gold and Silver have been consolidating at lower levels since over a week now & seem poised to take on a new leap upwards. Gold Futures for December delivery on the Multi Commodity Exchange – MCX Gold was higher at 31,450 rupees per 10 grams, after hitting a high of 31,475 INR, a level last seen on October 1, helped by a weaker Indian Rupee. The Indian festival and wedding season will start picking up in late October and peak next month during Diwali and Dhanteras, traditionally the occasions for buying & gifting Gold Bullion or Jewelry in India. Comex Gold yet has substantial support around $1747 & then further below at $1720. Upside target remains steady at $1855. Silver has been struggling to break above the resistance of $35.20 & once it closes above this, it enters a strongly bullish zone. Silver has substantial support around $33.