Silver Witness Rises On Short Covering, Resistance At 39100
CommodityOnline | Oct 21, 2014 04:21AM ET
The near-term catalyst to a short-covering rally will be continued improvement in US economic data and further stimulus measures in China.
Silver looking increasingly attractive at current levels and mostly dragged around by the same factors as its yellow peer—US data, weakness of the US Dollar and of course the equity market. Nonetheless, the metal was not impacted that much by these factors as in the week before. Current price weakness will be a temporary as prices hold’s support at 37,000 marks as investor focus returns to the positive fundamentals. Over 50% of silver demand comes from industrial applications, with China and the US accounting for over 40% of fabrication demand. The near-term catalyst to a short-covering rally will be continued improvement in US economic data and further stimulus measures in China. Silver is getting support at 37800 and below same could see a test of 37000 level, and resistance is now likely to be seen at 39100, a move above could see prices testing 39780.
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