Fresh selling seen in Silver, trading range 45284-46544
Mumbai-India (Mar 11) Silver settled down -0.50% at 45973 as disappointing Chinese export data helped underpin the market, with bullion investors closely monitoring the latest development in the standoff in Ukraine between Russia and the West. Earlier in the session, the bullion was trading lower, extending Friday's weakness after a strong February U.S. job report. The market later recouped initial losses as investors turned their focus to a report from China which showed the world's second-largest economy posted an unexpected tumble in export in February. With diplomacy at a standstill, gold did not respond from the worst standoff between Russia and the West since the Cold War.
On Monday, Russia said the United States had spurned an invitation to hold new talks resolving the Ukraine crisis. Bullion was trading lower as pressure mounted after rupee rallied to its highest level in seven months on Monday as foreign investors continued to buy into both equities and debt, even as most other Asian currencies fell after urprisingly weak Chinese trade data. Strong dollar selling by custodian banks on behalf of foreign investors forced exporters to also step up their greenback sales. In the weeks to come, the grey metal may draw some strength from signs of solid physical demand in India where several increases in precious metals import duties made silver more attractive compared to gold.
Technically market is under fresh selling as market has witnessed gain in open interest by 1.09% to settled at 11319 while prices down -232 rupee, now Silver is getting support at 45628 and below same could see a test of 45284 level, and resistance is now likely to be seen at 46258, a move above could see prices testing 46544.
Source: Commodity Online