Silver On MCX Settled Down -1.07%

Silver on MCX settled down -1.07% at 36571 after prices has gained in three of the past four sessions to trade at nearly one-week highs. Prices underwent a major correction last week, including a sudden flash crash that wiped as much as 11% off the grey metal’s value. The declines culminated in fresh 15-month lows on Friday. Pressure seen after the MSCI world index hit a record high for the fourth time in less than a month as investors took Yellen's remarks as a green light for risk-taking.

Also China posted stronger-than-expected June trade figures, bolstering the U.S. dollar, which advanced against a currency basket. The greenback earlier hit its lowest since last October after U.S. Federal Reserve Chair Janet Yellen struck a less hawkish than expected tone in testimony before Congress on Wednesday. On the contra Gold has been finding support from safe-haven demand amid political turmoil steaming out of Donald Trump Jr.'s release of emails revealing the Trump administration's alleged connection with Russia.

Adding to this, fading prospects for an aggressive Fed rate tightening cycle, following Wednesday's perceived dovish testimony by the Fed Chair Janet Yellen further reaffirmed by sliding US Treasury bond yields, was also seen driving flows towards the non-yielding yellow metal. Moreover, persistent US Dollar weakness, which tends to boost demand for dollar-denominated commodities, remained supportive of the metal's tepid recovery move back closer to weekly tops touched in the previous session.

Investors now look forward to Friday's important US macro data - monthly retail sales and the latest inflation figures, in order to determine the next leg of directional move for the commodity. Technically market is getting support at 36374 and below same could see a test of 36177 level, And resistance is now likely to be seen at 36924, a move above could see prices testing 37277.

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Suhani Verma

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