Silver responded fairly well after a rise in gold prices. Silver for July delivery rose 1.82% to close higher at $18.78/oz on Comex.

Silver is more volatile than gold. Weak dollar on reports of negative jobless data and falling manufacturing activities imparted gains in the precious metals’ segment.

Equities remained mixed with marginal gains posted by the benchmark MSCI world index for stocks.

Silver took cues from gold, rather from base metals. Base metals were down 2.5% on LME. There was no change in Ishares’ silver holdings.

It remained same at 9208.83 MT.

MCX silver ended nearly 1% higher at Rs. 29,489/kg, tracking international silver prices which were driven by higher bullion prices and weak dollar.

Outlook

Silver is trading at $18.74/oz on Comex’s electronic session during Asian hours, while the dollar index is also down. Asian equities turned positive after some losses in opening session which may now impart some gains in silver as well. Silver may track gains in gold and trade higher.

There are no major economic triggers for the day and hence, silver may take cues from broad market direction. MCX silver may open on lower note as rupee appreciated in its opening hours. Prices could later trade higher.

Courtesy: Karvy Commtrade Ltd.

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