IGI Securities Limited – Commodity News

Karachi, June 06, 2018 (PPI-OT): Silver

Technical

Silver markets have gone back and forth during the trading yesterday, as it continue to find support underneath at the $16.35 level that extends down to the $16.30 level after that. Economists believe that the short-term pullbacks continue to offer value the people take advantage of, as it go back and forth. It would use stochastic oscillator, or some type of range bound system to buy and sell in this market as it seems to be reasonably well defined. Longer-term, but the buying physical silver is probably the best way to go in that case. After all, at that point it becomes an investment. A massive amount of support at the $16 level underneath, it would be very surprised if it managed to break down through there. Market players believe that Silver markets continue to be the domain of short-term traders, so using something like the 15 minute chart is probably the best way to go.

Highlights

On a 3-month basis, silver prices this spring have moved in their narrowest range since 2001

The U.S dollar index is weaker today on a corrective pullback from recent gains that last week pushed prices to a 10.5-month high

The most critical component of recent price weakness in silver has been dollar strength

The lack of risk aversion in the marketplace at present is bearish for safe-haven gold and silver markets

Day-to-day, silver prices are typically twice as volatile as gold

Fundamentals

Silver prices moved little yesterday, relinquishing yesterday’s losses and trading sideways, with dollar still represents a pressure factor on commodity prices. U.S services sector activity accelerated in May, pointing to robust economic growth in the second quarter.

Asian stock indices declined today even after gains in the US, but weaker Asian shares failed yet to prop up silver as a traditional haven and an alternative investment.

Dollar is holding fast and heaping pressure on commodity prices amid stellar outlook and performance for the US economy. Silver last traded at $16.40 an ounce, almost at the same opening price, with a session-high at $16.42, and a low at $16.39.

Silver prices are trading near unchanged in quieter U.S trading early today. Metal investors are looking for some new fundamental news to help drive prices. July Comex silver was last down $0.011 at $16.42 an ounce.

World stock markets were mixed to firmer overnight. U.S stock indexes are pointed toward modestly higher openings when the New York day session begins. The U.S stock indexes are at 2.5-month highs as traders and investors are in upbeat, risk-taking moods at present.

The marketplace is mostly looking past U.S tensions with its major trading partners that threaten to boil over into a worldwide trade war. U.S Treasury yields fell yesterday as investors piled back into lower-risk government debt after Italy’s new prime minister vowed to enact economic policies that could balloon the nation’s already-heavy debt load.

A further decline in the US dollar would, of course, be incredibly supportive and bullish for silver. With current trade dispute between the United States and China entirely at a stalemate, it could see increased volatility in dollar pricing.

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IGI Securities Limited – Commodity News

Karachi, June 06, 2018 (PPI-OT): Silver

Technical

Silver markets have gone back and forth during the trading yesterday, as it continue to find support underneath at the $16.35 level that extends down to the $16.30 level after that. Economists believe that the short-term pullbacks continue to offer value the people take advantage of, as it go back and forth. It would use stochastic oscillator, or some type of range bound system to buy and sell in this market as it seems to be reasonably well defined. Longer-term, but the buying physical silver is probably the best way to go in that case. After all, at that point it becomes an investment. A massive amount of support at the $16 level underneath, it would be very surprised if it managed to break down through there. Market players believe that Silver markets continue to be the domain of short-term traders, so using something like the 15 minute chart is probably the best way to go.

Highlights

On a 3-month basis, silver prices this spring have moved in their narrowest range since 2001

The U.S dollar index is weaker today on a corrective pullback from recent gains that last week pushed prices to a 10.5-month high

The most critical component of recent price weakness in silver has been dollar strength

The lack of risk aversion in the marketplace at present is bearish for safe-haven gold and silver markets

Day-to-day, silver prices are typically twice as volatile as gold

Fundamentals

Silver prices moved little yesterday, relinquishing yesterday’s losses and trading sideways, with dollar still represents a pressure factor on commodity prices. U.S services sector activity accelerated in May, pointing to robust economic growth in the second quarter.

Asian stock indices declined today even after gains in the US, but weaker Asian shares failed yet to prop up silver as a traditional haven and an alternative investment.

Dollar is holding fast and heaping pressure on commodity prices amid stellar outlook and performance for the US economy. Silver last traded at $16.40 an ounce, almost at the same opening price, with a session-high at $16.42, and a low at $16.39.

Silver prices are trading near unchanged in quieter U.S trading early today. Metal investors are looking for some new fundamental news to help drive prices. July Comex silver was last down $0.011 at $16.42 an ounce.

World stock markets were mixed to firmer overnight. U.S stock indexes are pointed toward modestly higher openings when the New York day session begins. The U.S stock indexes are at 2.5-month highs as traders and investors are in upbeat, risk-taking moods at present.

The marketplace is mostly looking past U.S tensions with its major trading partners that threaten to boil over into a worldwide trade war. U.S Treasury yields fell yesterday as investors piled back into lower-risk government debt after Italy’s new prime minister vowed to enact economic policies that could balloon the nation’s already-heavy debt load.

A further decline in the US dollar would, of course, be incredibly supportive and bullish for silver. With current trade dispute between the United States and China entirely at a stalemate, it could see increased volatility in dollar pricing.

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