Silver futures reversed their course and settled higher at $18.90/oz. Silver closed higher, despite gold and base metals closed little changed.
LME’s base metals’ index (LMEX) closed 0.04% up. Gold also ended almost flat. Equities corrected after having gained on the penultimate day on China’s plans to add greater flexibility to Yuan.
In such case, silver took off on its own and settled the day with 0.5% gains at $18.90/oz on Comex. Shares silver holdings remained same at 9208.83 MT as on June 21, 2010.
MCX silver futures rose more than their counterparts on Comex with extra gains coming from rupee depreciation. MCX silver ended 0.68% higher at Rs. 29,568/kg yesterday.
Outlook
Silver is 11 cents down at $18.79/oz on Comex’s electronic platform while the dollar index is little changed. With gold trading break-even, silver is taking cues from LME’s electronic session which is running mixed to lower.
Falling new home sales in the US may weaken the demand for industrial metals. Euro zone PMI readings are also expected to be negative which may show a downturn in manufacturing and industrial segment.
Silver, on these data expectations, may trade lower. MCX silver may open lower due to weak international silver prices and rupee appreciation.
