Silver Prices May Witness Pullback in Evening Session

Silver also felt the same situation like gold. The gains throughout the day had been wiped out in the evening after the Greek deal remained undecided yet once again. The immediate delivery future settled down by 1.43% at COMEX. However, at MCX the loss was slightly lesser than that of COMEX.

Global equities also remained conservative yesterday. Despite having a good start, European markets retreated later after Greek finance chiefs ended the meet without a final conclusion

The Euro slid following the report of a lack of deal and settled slightly lower against the dollar from the prior

The I-share silver holding increased to 9664.26 tons from 9649.15 tons as on Feb.6

OUTLOOK:

Silver is seen trading slightly at a positive tune at the Globex. As we have discussed in Gold’s outlook, Asian equities are wavering between gains and losses and the Euro is also having a range bound move.
ECB’s promise of swapping Greek debt with EFSF has now stalled for some time.

Besides, the Greek deal talks have also delayed on demand for a complete blueprint of austerity measures. In the evening, ECB is likely to keep the interest rate unchanged but market still anticipates rate is to be lowered with an aim of easing paying off the debt.

Hence, Euro is likely to remain under pressure for the day. Silver therefore also will be remaining under pressure. However, if the rate is kept unchanged, we might expect a pull back in prices in the evening session. So, we recommend remaining short for the metal at higher prices.