Silver on MCX settled up 2.17% at 39895
Silver on MCX settled up 2.17% at 39895 as political uncertainty in the Middle East fuelled safe-haven demand. Investors piled into the precious metal amid growing political uncertainty in the Middle East after Saudi Crown Prince Mohammed bin Salman led an anti-corruption drive which resulted in a series of arrests of prominent Saudi Arabians. Despite data showing market participants increased their bullish bets on the precious metal last week, traders expected prices to remain range bound with biased toward the downside. The Federal Reserve Bank of New York confirmed that William Dudley, among the most influential monetary policymakers throughout the financial crisis and its aftermath, expects to retire by mid-2018, raising another question over leadership at the U.S. central bank less than a week after President Donald Trump chose a new Fed chief. Republican lawmakers on Monday began revising their proposed overhaul of the U.S. tax code, as Democrats pointed to the loss of popular deductions as proof the legislation was an assault on the middle class. The European Central Bank should ditch its central inflation target and accept a less stringent one, as the current policy cornerstone has distorted markets and risks normalizing interventions, its former chief economist said. Technically market is under short covering as market has witnessed drop in open interest by -10.15% to settled at 14376 while prices up 847 rupees, now Silver is getting support at 39365 and below same could see a test of 38834 level, And resistance is now likely to be seen at 40186, a move above could see prices testing 40476.
# Silver trading range for the day is 38834-40476.
# Silver prices gained as political uncertainty in the Middle East fuelled safe-haven demand.
# Investors were also focused on the proposed tax overhaul outlined by Republican lawmakers on Thursday.
# Some traders believe tax reforms could bolster growth, adding pressure on the Federal Reserve to raise interest rates, known as the “Trumpflation” trade.