Among other metals which were more closely tied to economic activity through their industrial usage hit multiweek lows.
Silver settled at its lowest in nearly two weeks and slipped below $18/oz for the first time this month.
Copper also fell to the lowest levels in two weeks. Base metals complex on LME weakened for second straight day by posting 1.71% losses yesterday.
Facts:
The dollar index remained firm throughout the session and added 1.85% to 82.290. The Japanese Yen climbed on concerns of faltering global recovery.
Equities bore the brunt of heightening worries about the pace of global economic recovery.
The benchmark MSCI world index for stocks closed down by 2.84%. Ishares silver trust maintained its holdings at 9151.03 MT yesterday.
MCX silver futures for September month were down by 0.56% to close at Rs. 28,821/kg. Weaker rupee limited the fall of domestic silver futures.
Outlook
Silver is trading break-even in Asian hours as there are little changes in the dollar index and gold. LME’s base metals are lowering which may drag down silver prices further during the day.
Asian equities are sharply lower after Wall Street’s heavy losses yesterday and the Japanese yen rising against the dollar and thus, continue to hurt the exporters.
Markets sentiments are taking a dive on worries of global recovery, after the Fed’s downbeat assessment of the US economy and the Bank of England also downgraded the UK’s growth outlook. Recent Chinese data also showed a slow down in Chinese economy.
These all concerns are prompting investors to bail out of riskier assets such as equities. Silver may remain lower on weak global cues and lowering base metals. Indian silver may remain relatively supported due to weak rupee.
