Commodity News and Market Updates
Silver edged lower following rumors of a possible six-month extension on Greece's debt. Prices briefly hit the lowest levels of the session after rumors surfaced that the European Commission could propose a six-month extension to Greece's bailout program, which is due to end on February 28. Prices were slightly higher earlier in the day amid concerns over Greece’s future in the euro zone as negotiations with the European Union over the
country's debt and bailout continued. Meanwhile, the growing possibility of an earlier Federal Reserve rate hike also weighed, following last week's robust U.S. jobs report, which saw market players bring forward expectations for the first rate hike to June. Expectations of higher borrowing rates going forward is considered bearish for bullion, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise. A government report released earlier showed that Chinese inflation for January slowed to 0.8%, the lowest since November 2009, from 1.5% in December. The producer price index fell by a more-than-expected 4.3% last month, giving policymakers in Beijing more room to ease monetary policy. A Commerce Department report on Tuesday showed U.S. wholesale inventories edged slightly higher in December, after having reported a notable increase last month. Wholesale inventories inched up by 0.1 percent in December after climbing by 0.8 percent in November. Economists expected inventories to edge up by 0.2 percent. Technically market is under long liquidation as market has witnessed drop in open interest by -0.69% to settled at 9022 while prices down -199 rupee, now Silver is getting support at 37202 and below same could see a test of 36805 level, And resistance is now likely to be seen at 37973, a move above could see prices testing 38347.
Greek PM Alexis Tsipras comfortably won a confidence vote on his plan to cancel a deeply unpopular bailout programme and challenge European leaders as both sides prepare for a showdown at meetings in Brussels this week. China's economy is now more sustainable and domestic consumption is steadily
rising, Chinese Central Bank Vice Governor told a G20 meeting of finance officials earlier this week. China's annual consumer inflation hit a five-year low in January while factory deflation worsened, underscoring deepening weakness in the economy and heaping pressures on policymakers to inject more stimulus to underpin growth.
