Silver prices also fell amid growing uncertainties in the market. Dollar gains, weekend profit booking and India hiking its benchmark interest rates drove silver prices down.

US silver futures fell more than 2 percent and closed down at $17.03/oz on Comex. Interest rate hike by the RBI weighed on markets.

Base metals’ complex on LME also declined 0.93 percent on Friday which drove silver prices down. Furthermore, firmer dollar reduced silver’s alternative investment demand. Weaker equities supplemented the fall in silver prices.

The MSCI world index for stocks lowered 0.50 percent.

Shares silver holdings reduced its holdings by 24.40 MT to 9278.18 MT on Friday. MCX silver futures traded in the range of Rs. 26,580 – Rs. 27,080/kg before closing 1.83 percent lower at Rs. 26,611/kg on Friday. Prices were little changed on Saturday.

Outlook

Silver is trading lower at $16.96/oz because of weak equities in Asia. The RBI increased its benchmark interest rates by 25-basis points on Friday which can dampen the demand for higher-yielding assets. The dollar index is slightly up which also check will silver prices during the day. Gold and base metals’ movement will continue to drive silver prices. Silver could open on regular note on MCX platform.

Courtesy: Karvy Commtrade Ltd.

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