Silver on MCX settled down -0.32% at 42147 as the dollar strengthened amid expectations for more U.S. interest rate hikes this year. U.S. economic growth slowed less than previously reported in the fourth quarter as robust consumer spending provided a boost that was partially offset by the largest gain in imports in two years.
Prospects for the U.S. economy have brightened now that fiscal stimulus from Washington appears more likely, so the Federal Reserve will need to keep raising rates and eventually trim its bond portfolio to avoid an overheating, one of the most influential Fed policymakers said on Thursday. Cleveland Federal Reserve reiterated her hawkish view concerning interest rate hikes Thursday, as she said that “further removal of accommodation via increases in the fed funds rate will be needed” should economic conditions “evolve as anticipated”.
Fed President John Williams, tapered some of his bullish rhetoric on the U.S. economy, after he said even though the economy shows “consistent” and “encouraging” signs, “housing still isn’t quite back”. The European Union will tell Britain on Friday how it aims to negotiate its "orderly withdrawal" from the bloc, limit uncertainties for businesses and pave the way for a close future partnership.
Technically market is under long liquidation as market has witnessed drop in open interest by -2.74% to settled at 11338 while prices down -136 rupees, now Silver is getting support at 41938 and below same could see a test of 41729 level, And resistance is now likely to be seen at 42378, a move above could see prices testing 42609.