Silver prices pared some of their gains as growing optimism on tax reform offset earlier reports that Michael Flynn was “prepared to testify” against President Donald Trump as part of an investigation into Russia’s involved in the presidential election. Flynn is prepared to testify that President Donald Trump directed him to make contact with Russians when he was a presidential candidate.
That sparked a flight to safety, pressuring treasury yields, while supported an uptick in demand for safe haven, which rose as much as 1% before pairing gains on signs that tax reform was gathering momentum. Data showed the ISM Manufacturing PMI down to 58.4 in November from 58.7 in October, while ISM Manufacturing Prices fell as well to 67.0 from 68.5, as construction spending accelerated to 0.5% from 0.3% in September.
Investors feared the political news could affect whether the Senate will pass a tax bill backed by Trump. The report about Flynn “was a good catalyst for people who were anticipating buying gold. It sparked the fear trade.” Federal Reserve Bank of Dallas President Robert Kaplan participated in a panel discussion at the Border Economic Development and Entrepreneurship Symposium, in Texas, while Federal Reserve Bank of Philadelphia President Patrick Harker spoke about approaches to economic growth at a policy forum hosted by the Federal Reserve Bank of Philadelphia.
Technically market is under fresh buying as market has witnessed gain in open interest by 17.43% to settled at 17983 while prices up 99 rupees, now Silver is getting support at 38123 and below same could see a test of 37801 level, And resistance is now likely to be seen at 38771, a move above could see prices testing 39097.