Last Updated : June 21, 2010 11:50
Silver gains more than gold, rises 2.17%
Silver rose more than gold and closed 2.17% higher at $19.18/oz on Comex.
Silver for July delivery added 40 cents, or 2.17%, to $19.18 an ounce, the highest close since mid-May. Week-on-Week, silver gained more than 5%.
Silver stayed away from base metals’ movements and rather tracked gains in gold.
Base metals are witnessing a continuous fall after having risen in the initial part of the week. LME’s base metals closed 0.70% down.
Equities posted marginal gains on Friday with the benchmark MSCI world index closed 0.23% higher. Ishares silver holdings remained same at 9208.83 MT as on June 18, 2010.
MCX silver also ended higher, tracking gains in international silver futures. Silver for July delivery closed higher at Rs. 29,911/kg on Friday. Firm rupee subdued the gains on MCX.
Outlook
Silver futures are trading tad higher at $19.21/oz after commodities’ markets gained on China’s decision of Yuan’s revaluation against the dollar.
China will make its currency more flexible, though still keeping it managed-float as the currency will be allowed to move in the band of 0.5%. This is bullish for those commodities which China imports, mainly base metals and oil.
Other Asian currencies will also appreciate. Equities have already gained more than 2% in most of the Asian markets. Silver may trade on higher side, tracking gains in base metals and equities.
On the other hand, rally in MCX silver futures may be subdued due to heavy appreciation in Indian rupee.
Courtesy: Karvy Commtrade Ltd.
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