Silver settled flat with sentiment on the outlook for Fed rate hikes driving the market, though an extraordinary day of news about Russian meddling in the presidential election raised political risk. G20 financial leaders failed to make a case for open and free global trade while more dovish than expected Fed comments last Wednesday concerning rate hikes continued to support the metal.
Fed Chair Janet Yellen's cautious guidance last week has investors pricing in almost no chance of another rate rise at the next policy meeting in May, and is seen rising to around 50-50 for June. Markets are also looking ahead for a packed week of Fed messaging, with no less than nine different policy makers set to speak, including Chair Janet Yellen on Thursday.
Financial leaders of the world's biggest economies dropped a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States after a two-day meeting failed to yield a compromise. U.S. factory output increased for a sixth straight month in February while consumer sentiment rebounded in early March, underscoring the economy's resilience even as growth appears to have slowed significantly in the first quarter.
Monday was a quiet day for top-tier economic data releases, investors continued to focused on the Federal Reserve’s comments last Wednesday, as the U.S. central bank maintained its outlook of two more rate hikes this year against expectations from market participants of three more rate hikes.
Technically market is under fresh selling as market has witnessed gain in open interest by 2.15% to settled at 13949 while prices down -40 rupees, now Silver is getting support at 40766 and below same could see a test of 40662 level, And resistance is now likely to be seen at 41018, a move above could see prices testing 41166.