Slight weakness in the dollar pushed silver prices up By Mr. Abhishek Bansal, Abans Group
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Below are Quote and Outlook on Silver By Mr. Abhishek Bansal, Founder Chairman, Abans Group.
Slight weakness in the dollar pushed silver prices up
Silver is currently trading near $26.285 at the time of writing this report, sharply high from Monday’s low of $25.580. Weakness in the US dollar index is likely to support precious metals prices. The dollar index is currently trading near 91.74 which is sharply lower from a high of 92.395 registered on June 18.
However, weaker than expected US economic data is likely to keep a cap on Silver prices.
On the economic data front, US weekly initial unemployment claims fell -7,000 to 411,000, showing a weaker labor market than expectations of 380,000. Also, May capital goods orders nondefense ex-aircraft & parts unexpectedly fell -0.1% m/m, weaker than expectations of +0.6% m/m.
However positive economic data from Eurozone is likely to provide support to silver prices. The German Jun IFO business climate rose +2.6 to a 2-1/2 year high of 101.8, stronger than expectations of 100.7. France Jun business confidence rose +5 points to a nearly 14-year high of 113, stronger than expectations of 110.
According to the CFTC Commitments of Traders report for the week ended June 15, the net long for silver futures jumped 2258 contracts to 52064 for the week. The speculative long position gained 5213 contracts, while shorts increased by 2955 contracts.
Silver prices are likely to find immediate support near $25.67 and $25.10 while immediate resistance is seen around 20 days EMA at $26.87 and 50 days EMA at $27.017
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