Silver may trade 47089-48371 range, resistance at 48079
Mumbai-India (Feb 20) Silver settled down -0.49% at 47787 fluctuated between small gains and losses after the release of Federal Reserve meeting minutes that highlighted the possibility of an increase in interest rates sooner than expected. Bullion prices have risen in recent weeks due to soft jobs, manufacturing and other economic indicators that have prompted many investors to speculate that the Federal Reserve may slow the pace at which it tapers its asset-buying stimulus program.
The Fed is currently buying $65 billion in bonds a month to suppress interest rates to spur recovery, which weakens the dollar as a side effect, thus bolstering gold's image as a hedge. Hit-or-miss data out of the U.S. failed to provide guidance ahead of time. The Commerce Department reported earlier that U.S. housing starts fell 16% in January to 880,000 units, outpacing expectations for a 5.7% drop, though a series of winter storms may have played a factor. The number of building permits issued last month declined by 5.4% to a seasonally adjusted 937,000 units, outpacing expectations for a 1.8% decline. A separate report revealed that the U.S. PPI rose 0.2% last month, beating forecasts for a 0.1% gain, while core producer prices were also up 0.2%.
Earlier this month Fed Chair Janet Yellen indicated that the central bank is on track to maintain the pace of reductions to its stimulus program, as long as the economy continues to improve as expected. Silver prices have been well-supported in recent weeks amid concerns that the U.S. economic recovery has lost momentum since the end of last year as inclement winter weather weighed on growth. Technically market is getting support at 47438 and below same could see a test of 47089 level, and resistance is now likely to be seen at 48079, a move above could see prices testing 48371.
Source: Commodity Online