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.

USD Economic News

Brent futures held steady near USD 114 on Wednesday as expectations Europe's financial crisis is on the mend renewed hopes of a revival in oil demand growth, while simmering tension in the Middle East provided additional support.

Asian shares, the euro, base metals and gold all rose after Moody's Investors Service affirmed its investment grade rating on Spain, helping ease investor worries of a worsening crisis in the region. Oil was also supported by supply concerns as the European Union slapped fresh sanctions on Iran.

Brent slipped 12 cents to USD 113.88 a barrel by 0432 GMT. The November contract, which expired on Tuesday, went off the board 73 cents lower at USD 115.07, while the December one settled 40 cents lower at USD 114.00. US oil gained 18 cents to $92.27.

"We are seeing prices react to the investment grade news for Spain, but the demand outlook continues to look weak because of the global economic condition," said Victor Shum, managing director at IHS Purvin and Gertz in Singapore. "Prices are drawing support from supply concerns in the Middle East."

European Union governments imposed sanctions against major Iranian state companies in the oil and gas industry and strengthened restrictions on the central bank.

More than 30 firms and institutions were listed in the EU's Official Journal as targets for asset freezes in the EU, including the National Iranian Oil Company (NIOC), a large crude exporter, and the National Iranian Tanker Company (NITC).

The United States and the European Union are putting pressure on Iran to stop its disputed nuclear programme, while Tehran says it needs the technology to generate electricity.