Karachi, June 13, 2018 (PPI-OT): Silver
Silver markets have pulled back a bit during the trading session yesterday, reaching towards the $16.75 level before bouncing significantly in reaching towards the $16.90 level above. Economists think that the $17 level above will of course offer a significant amount of resistance based upon the psychology of the round number, but ultimately it probably break above there and go looking towards the $17.50 level. The market underneath is well supported various levels, not the least of which would be the $16.50 level. The easiest way to trade Silver, is to buy physical silver and cash in later due to it being an investment. Market players think that the “ceiling” in the market right now is closer to the $20 level, and if it break above there it will see an explosion to the upside. Short-term pullbacks continue to offer an investment opportunity occasionally, and eventually it will break out.
Silver fell 0.4 percent to $16.78 an ounce. It hit a seven-week high of $16.95 in the previous session
The metal poked above its sideways corridor and threatened $17
Silver price were to exceed the $17 mark, this could lure in further buyers and continue the price rise
July Comex silver was last down $0.122 at $16.825 an ounce
Silver has certainly made good some ground in recent weeks
Silver prices fell on Tuesday away from seven-week highs as demand fell on commodities and dollar recovered against major rivals. Silver inched down to $16.88 an ounce from the opening of $16.89, with an intraday high at $16.92, and a low at $16.84.
Optimism is growing in the market over the US-North Korea summit, underpinning dollar and hurting demand on traditional safe havens such as gold and silver. Investors also await the Federal Reserve’s policy meeting this week, expected to hike interest rates and offer yet more support to the dollar and heap pressure on commodities.
Silver markets did not react significantly to the just-concluded U.S and North Korea summit. CPI for May came in at up 0.2% from April and up 2.8%, year- on-year. Those numbers were in line with market expectations and had little impact on the markets.
The world marketplace is taking in stride the apparent positive conclusion of the summit meeting on denuclearization between U.S President Donald Trump and North Korean President Kim Jong Un.
Attention will quickly turn to the Federal Reserve’s Open Market Committee meeting that ends today afternoon with a statement. It is widely expected the FOMC will raise U.S interest rates by 0.25% at this meeting.
Silver, U.S Treasuries and the world currency markets were showing muted reactions to the summit’s conclusion, probably because investors realize there are going to be lots of twists and turns on the road to complete denuclearization of North Korea, but still reckon this is a good start.
World stock markets were mixed to weaker after the meeting, with U.S stock indexes set to open steady to slightly lower when the New York day session begins.