Yesterday, the global commodity market witnessed a mixed trend, where Comex gold prices fell by 0.61% and Silver by 1.25%.
Brent Crude futures were up 52 cents, or 0.6%, at $86.44 a barrel at 0151 GMT, following a 1.7% rally in the previous session.
U.S. West Texas Intermediate (WTI) crude futures gained 55 cents, or 0.7%, to $80.73 a barrel, having risen 0.4% on Tuesday.
Today, the Bank of Japan (BOJ) kept its benchmark interest rates unchanged as expected, and also maintained its current rate of yield curve control, ducking market expectations for more hawkish signals.
The Japanese yen plunged more 2.30% and trading at 131.11 against the dollar after the move, while yields on benchmark Japanese government bonds slumped over 3% to below the 0.5% level.
The central bank maintained its short-term policy interest rate at negative 0.1%, and kept its long-term interest rate at 0%. The decision marks the seventh year that the central bank has held interest rates at record lows.
Now the sentiment will shift on the Bank of Japan Monetary policy sentiment and outlook scheduled during the day, time is tentative, which will add more speculative move in the yen as any surprising comments about the Japan Inflation in Bank of Japan press conference will lead huge volatile move in the JPY as well as well as in the gold prices.
At 12.30 pm UK will release its CPI data with slightly lower than previous reading forecast, which will have a significant impact on the GBP and in the dollar, as any negative sign may lift clutter for the Euro zone market.In evening session, at 7.pm US Core PPI, Core retail sales, PPI and Retail sales data will drive the Bullions and dollar prices significantly.
Silver Outlook
Today, MCX Silver prices trading slightly positive nodes. March Future on MCX now trading at 69590 levels. The prices found support from the low 69087 as after the dollar saw some weakness from the day’s high 102.6550 and trading at 101.672 against its major counterpart.
U.S. dollar edged lower sharply after the Bank of Japan maintained its accommodative stance, bucking expectations for a hawkish policy shift. The BOJ also said it will maintain the range of fluctuation in 10-year bond yields at between 0.5% and negative 0.5%, confounding expectations for a further adjustment in the rate, after the central bank unexpectedly widened the range in December.
The yen has rallied 14% in the past three months on expectations that the Bank of Japan will eventually move away from its super-easy stimulus policy, especially as inflation starts to rise significantly.
Adding to this, GBP found support against the dollar and rose by 0.3% to 1.2321 after data released earlier showed U.K. inflation stayed stuck at over 10% in December, pointing to more interest rate hikes ahead from the Bank of England.
Technical View- On the four hourly chart, Silver prices are trading on a verge of bullish pennant pattern. In case prices break above 69650 levels, then we could expect a bullish rally towards the next resistance of 70000-70500. Else, any dip towards 69350-69300 could attract short term buying activities with stop loss below 68850.00
On the downside, Crucial support is seen at 68580 and a break below only could expect to test next support 68200-67850.00