Karachi, January 11, 2016 (PPI-OT): Silver
Silver markets tried to rally during the course of the week but found far too much resistance near the $14.50 level. With this being the case, the market looks as if it is going to continue to sell off every time IGI Securities Limited try to rally, but it is more or less a short-term trader’s type of situation. IGI Securities Limited has no interest whatsoever in buying this market at this point, because the buyers simply cannot hang onto their positions for any real length of time. IGI Securities Limited believes ultimately this market will break down below the bottom and reach towards the $12 handle.
Buy positions above 13.9 with targets at 14.09 and 14.19 in extension
Silver futures for March delivery dropped 42.6 cents, or 2.97%, on Friday to settle at $13.91 a troy ounce
On the week, silver futures inched up 10.3 cents, or 0.83%
The U.S. economy added 292,000 jobs last month after increasing an upwardly revised 252,000 in November
The unemployment rate held steady at a seven-and-a-half year low of 5% in December
The U.S. dollar index was last at 98.45, up 0.16% for the day
Silver futures for March delivery dropped 42.6 cents, or 2.97%, on Friday to settle at $13.91 a troy ounce. On the week, silver futures inched up 10.3 cents, or 0.83%.
Elsewhere in metals trading, copper for March delivery dipped 0.6 cents, or 0.28%, to settle the week at $2.022 a pound on Friday after sinking to $1.990 on Thursday, a level not seen since May 2009.
For the week, Comex copper prices plunged 5.4 cents, or 5.13%, as a meltdown on China’s stock market and a rapid depreciation of the yuan rattled investor sentiment.
While investors had expected the central bank to allow the yuan to fall further after last year’s 4.5% depreciation, the rapid pace of the devaluation has fuelled fears that the world’s number two economy is growing even more slowly than expected.
Meanwhile, the U.S. is to release data on retail sales, producer prices and consumer sentiment as market players look for further indications on the strength of the economy and the future path of rate hikes.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 98.45, up 0.16% for the day.
The Labour Department reported that the U.S. economy added 292,000 jobs last month, after increasing an upwardly revised 252,000 in November. Economists had forecast payrolls to rise by 200,000. The unemployment rate held steady at a seven-and-a-half year low of 5% in December. The report bolstered expectations that the Federal Reserve could raise interest rates at a faster pace this year.
Category: General Business News