IGI Securities Limited – Commodity News

Karachi, June 11, 2018 (PPI-OT): Silver

Technical

Silver markets rallied significantly during the week, closing towards the top of the candle in a sign of strength. If it can break above the top of the candle, it should continue to go to the $17.50 level. This is a market that should continue to be noisy, but the $17.50 level above is massive resistance. Economists think it will have a significant fight up there but given enough time that silver will continue to climb, perhaps due to a falling US dollar longer-term, or perhaps even some type of geopolitical event. Market players believe that the $20 level above is a major level, and once it break above there it is looking at a longer-term “buy-and- hold” investment that could rocket towards the $50 level above. The $16 level is the beginning of major support extending down to the $15.50 level, and it is very difficult to think that this market will break down below there in continue to go much lower.

Highlights

July Comex silver was last up $0.015 at $16.83 an ounce.

The week will also bring updates on U.S inflation, retail sales and industrial production

It is widely expected to raise interest rates in what would be its second rate hike this year

Silver futures settled at $16.82 a troy ounce, almost unchanged for the day, but posting a weekly gain of 1.87%

The U.S dollar index is higher today on a rebound from this week’s losses and a bit of safe-haven demand

Fundamentals

Silver prices dipped in Asian trade on Friday away from six-week highs hit yesterday amid trade tensions before the G7 summit. Silver last traded at $16.67 an ounce, almost at the opening of $16.68, with a session-high at $16.73, and a low at $16.66.

Silver gained 0.9 percent at $16.89 an ounce, after hitting a seven-week high of $16.93 earlier in the session. The metal was up 2.3 percent last week, also its biggest weekly percentage rise in seven-weeks.

However, the gains were trimmed down due to the outlook of Federal Reserve’s policy tightening this year, with gradual increases to interest rates, while the dollar maintains strength. The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1 percent at 93.452.

The U.S central bank has “lots of reason” to be concerned, precious metals investor and founder of Sprott Inc Eric Sprott, adding that silver will “prosper” following the very likely hike.

Silver prices are trading near unchanged levels in early U.S trading Friday. Selling interest in the safe-haven metals will be limited today, heading into the weekend and pending major geopolitical developments.

There is some uncertainty and even some anxiety among traders and investors heading into this weekend’s Group of Seven meeting in Canada between the major industrialized countries of the world. Tightening policy by a notch just one day apart, the world’s top two central banks will hope to signal confidence in global economic growth, despite risks of a trade war.

World stock markets were lower overnight and U.S stock indexes are pointed toward lower openings when the New York day session begins. Silver’s rise yesterday came as US treasury yields tumbled, as investors look for safe havens such as bonds and silver amid concerns of a global trade war.

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IGI Securities Limited – Commodity News

Karachi, June 11, 2018 (PPI-OT): Silver

Technical

Silver markets rallied significantly during the week, closing towards the top of the candle in a sign of strength. If it can break above the top of the candle, it should continue to go to the $17.50 level. This is a market that should continue to be noisy, but the $17.50 level above is massive resistance. Economists think it will have a significant fight up there but given enough time that silver will continue to climb, perhaps due to a falling US dollar longer-term, or perhaps even some type of geopolitical event. Market players believe that the $20 level above is a major level, and once it break above there it is looking at a longer-term “buy-and- hold” investment that could rocket towards the $50 level above. The $16 level is the beginning of major support extending down to the $15.50 level, and it is very difficult to think that this market will break down below there in continue to go much lower.

Highlights

July Comex silver was last up $0.015 at $16.83 an ounce.

The week will also bring updates on U.S inflation, retail sales and industrial production

It is widely expected to raise interest rates in what would be its second rate hike this year

Silver futures settled at $16.82 a troy ounce, almost unchanged for the day, but posting a weekly gain of 1.87%

The U.S dollar index is higher today on a rebound from this week’s losses and a bit of safe-haven demand

Fundamentals

Silver prices dipped in Asian trade on Friday away from six-week highs hit yesterday amid trade tensions before the G7 summit. Silver last traded at $16.67 an ounce, almost at the opening of $16.68, with a session-high at $16.73, and a low at $16.66.

Silver gained 0.9 percent at $16.89 an ounce, after hitting a seven-week high of $16.93 earlier in the session. The metal was up 2.3 percent last week, also its biggest weekly percentage rise in seven-weeks.

However, the gains were trimmed down due to the outlook of Federal Reserve’s policy tightening this year, with gradual increases to interest rates, while the dollar maintains strength. The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1 percent at 93.452.

The U.S central bank has “lots of reason” to be concerned, precious metals investor and founder of Sprott Inc Eric Sprott, adding that silver will “prosper” following the very likely hike.

Silver prices are trading near unchanged levels in early U.S trading Friday. Selling interest in the safe-haven metals will be limited today, heading into the weekend and pending major geopolitical developments.

There is some uncertainty and even some anxiety among traders and investors heading into this weekend’s Group of Seven meeting in Canada between the major industrialized countries of the world. Tightening policy by a notch just one day apart, the world’s top two central banks will hope to signal confidence in global economic growth, despite risks of a trade war.

World stock markets were lower overnight and U.S stock indexes are pointed toward lower openings when the New York day session begins. Silver’s rise yesterday came as US treasury yields tumbled, as investors look for safe havens such as bonds and silver amid concerns of a global trade war.

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