When gold and equities took a downturn in late US hours followed by Ben Bernanke’s negative economic outlook, other metals posted stronger gains. Silver futures for September delivery on Comex rose more than 0.6% to $17.80/oz with Copper also rallying by more than 3%. Base metals are mainly cheering better housing figures from the US earlier this week and thus, closed more than 2.6% on LME.
Facts:
The Dollar index rose 0.7% yesterday, gains mainly imparted by weak Euro and Sterling. The Euro fell nearly 1% to $1.2754 on concerns of poor results of European banks’ stress test. The dollar index evaded from Bernanke’s disappointing testimony to the congress as it was released in late US hours.
Equity markets remained firm over Asian and European sessions. However, US markets took a beating as investors were spooked by Federal Reserve Chairman Ben Bernanke's downbeat assessment of the U.S. economic outlook. The benchmark MSCI world index for stocks ended 0.5% lower.
Ishares silver trust maintained its silver holdings at 9185.29 MT yesterday.
MCX silver futures for September month also moved up by nearly 0.6% to Rs. 28,797/kg yesterday.
Outlook
Silver is trading 15 cents down at $17.65/oz in Asian after Ben Bernanke made negative remarks about the US economy in late US hours. Silver is seeing a follow-through to the downside. Moreover, negative economic data from both the US and Euro zone may also keep silver prices subdued. Asian equities also took cues from weak closing of US markets overnight which may further drive silver prices down. KCTL recommends selling silver for the day.
