Silver also showed firm move yesterday tied by globally strong equities. The immediate delivery future rose 3.59% at the COMEX. However, at MCX the gain was lower due to rupee appreciation by more than one and half a percentage point.
The US equities rose amid handy economic releases and probable acts that may act to spur growth in China. European markets were also ended with modest gains
The dollar index weaken against the Euro as the rating agencies said they expect France to maintain “AAA” credit rating, which certainly helped the Euro to prop up
The I-share silver holding to 9516.75 tons from 9605.79 tons last week
OUTLOOK:
Silver is also seen trading slightly higher from yesterday’s closing. As we have discussed in gold’s outlook, the Asian equities are trading mostly at a downside, silver’s price growth may be hampered. However, a stronger Euro and expectation of ECB to keep the rate unchanged will be supportive for the metal.
From the economic data front as well we can see the US releases may come up with a good signal to the economy. However, an increase in jobless claims due to slash in government jobs might pressurize the dollar. So, silver is likely to remain strong for the day and hence, we recommend remaining long for the metal for the day.
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