Silver closed 0.78% lower at $20.64/oz yesterday, tracking gold futures lower. However, heavy investment demand led spot silver to take a stunning rise and thereby, prices closed higher at $20.97/oz in spot markets. Gains in spot markets will be seen in forthcoming sessions of futures trading.
Key Observations
The dollar index closed 1.10% down after possible quantitative easing will erode the value of the dollar. The benchmark MSCI World index closed 0.18% down.
Downside in the U.S. stocks was limited after the Federal Reserve said Tuesday it was ready to do more to recharge the U.S. economy. IShares Silver Trust accumulated 127.81 MT of silver to take its holdings to 9509.55 MT yesterday.
MCX silver futures fell in line with international silver futures. Silver closed 0.64% lower at `31,937/kg on MCX.
Outlook
Silver is significantly up at $20.98/oz in Asian hours after spot prices rose heavily while futures failed to rise. Silver futures for December-delivery are nearly 35 cents up as the dollar index is also trading lower.
Higher prices in gold are also extending initial gains in silver. Investment demand may lead further gains. KCTL expects silver to remain firm for the day.
