Silver On MCX Settled Down

Silver on MCX settled down -1.22% at 41430 after data showed companies in the U.S. added jobs at a blistering pace in February. Payroll processing firm ADP said nonfarm private employment rose by 298,000 payrolls in February, well above forecasts for an increase of 190,000. The big number could cause economists to adjust their expectations for Friday's key nonfarm payrolls number. The market currently expects the report to show growth of about 190,000 jobs. 

The upbeat report added to already strong expectations that the Federal Reserve will raise rates at its upcoming policy meeting next week. The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced. Futures traders are pricing in around a 90% chance of a hike at the Fed's March 14-15 meeting, according to reports.

Investors are awaiting February non-farm payrolls data on Friday as a barometer of the U.S. economy after Federal Reserve Chair Janet Yellen said last week the central bank was poised to lift rates provided jobs and inflation data held up. Her comments were seen as cementing plans for an increase at the Fed's March 14-15 meeting. The European Central Bank is set to keep monetary policy on hold on Thursday as it casts a cautious eye ahead to high-risk elections in the Netherlands and France during an upsurge in populist, anti-establishment sentiment. 

Technically market is under fresh selling as market has witnessed gain in open interest by 9.62% to settled at 12529 while prices down -513 rupees, now Silver is getting support at 41219 and below same could see a test of 41007 level, And resistance is now likely to be seen at 41801, a move above could see prices testing 42171.

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Suhani Verma

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