Silver futures recovered from session low of $16.88/oz and closed 0.38 percent higher at $17.34/oz. Stronger dollar yesterday dented the demand for precious metals as an alternative investment.

However, some strike concerns in one of the Peru’s silver mines boosted silver prices in US trading hours. Peru is the world’s largest silver producer. Base metals also closed 0.56 percent higher at LME and thus supported silver prices.

The MSCI index for world stocks remained firm and rose 3 percent yesterday. Ishares silver holdings reduced its silver holdings by 61.03 MT to 9351.40 MT yesterday. MCX silver futures for May delivery closed 0.56 percent up at Rs. 27,033/kg.

Outlook

Silver looks firm for the day as strike concerns in Peru will persist in the market. Silver trades almost flat at $17.32/oz during Asian hours while the dollar index is little changed. Asian equities are trading lower which could have some negative impacts on silver prices initially.

Later, US wholesale inventories rising further could weaken the dollar which may help silver rise. German trade surplus is also expected to widen further and thus will support the euro. MCX silver futures may open flat with positive bias for the day.

Courtesy: Karvy Commtrade Ltd.

Get a bigger political picture to help you invest

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook