Silver falling throughout month

Silver footprint the movement of Gold and has continued doing so this month as well. US dollar has been the major deciding force behind the movement of bullions. Bullions remained under pressure as dollar gained strength. The white metal has been falling throughout the month and tested the levels of Rs22100/kg that is at $13.5.

Silver has also been demonstrating a downtrend as the ETF Securities silver holdings fell to 19.9 million ounces, down 0.8 percent from June 18. The news of gold selling through IMF influenced the market in a big way. But overall the fundamental scenario of the silver seems to be positive as fresh buying is picking up by retailers and industrial units.

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Silver fell more than gold as the fall in industrial metals also put pressure on white metal. Silver inched down during June as market failed to sustain $16/ounce levels in the international spot. Market trailed the yellow metal as it failed to display the higher relative strength it had during May.

While the near term bias does seem to be positive for the white metal, one can expect market to face a lot of overhead supply at $15-16.23 range (MCX: Rs.23700-24690/kg). Hence aggressive long build ups are only encouraged above those levels. Seasonality view too doesn't favour the bulls in July-August for precious metals.

Courtesy: Religare Commodities

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