Meanwhile, silver futures also tracked gold prices and closed higher yesterday. However, prices erased their early margins and fell from the session-high of $27.90/oz to close at $27.46/oz.
The recovery in the dollar index and falling equities in later sessions brought down the silver prices.
Key Observations
Silver futures for December-delivery gained more than 1% to close at $27.46/oz yesterday.
The dollar index, which measures the greenback against a basket of six major currencies, recovered all the way from its intra-day losses and closed 0.23% up at 78.682 levels.
Equities were up in Asian sessions on news of Ireland getting a bailout but soon, they turned negative after Ireland’s political stability issues came into limelight which made investors believe that debt issues may prevail for some more time.
The benchmark MSCI World Index for stocks closed 0.32% down. iShares Silver Trust’s silver holdings continued to rise and yesterday, it went up by 27.36 MT to 10841.98 MT. MCX silver futures for December-delivery closed 0.71% up at `41,763/kg yesterday.
Outlook
Silver is up by 14 cents at $27.60/oz during Asian sessions while the dollar index is also trading higher by nearly 0.20%. The dollar is up owing to its increased safe haven status amid Ireland Prime Minister calling for mid-term election early next year.
Gains in the dollar index may limit precious metals to rise further or also result in a possible drag in later session. However, prices are also likely to be influenced by several important economic data scheduled today.
We are expecting silver to trade sideways and take cues from actual data releases for further price movements.
