The week gone by silver could not sustain the early gains and plunged 0.78% in the Comex division. The same has been observed in the MCX division. The reviving dollar index has put pressure on the metal to release some value.
In the last session global equities had a mixed performance where most of the Asian equities closed in green while the DJIA and FTSE shattered a bit. The I-share silver holdings slipped to 10534 tons from 10540.48 tons as on 13th May.
Outlook:
At the Globex platform Silver is seen trading up by $0.092 at $35.105 and the dollar index at present is at a stronger note. The Asian equities at present are almost trading flat at a lower side and the dollar index is in a commanding mode.
As discussed in gold’s outlook, the dollar is appreciating against the Euro on speculation that the European Finance ministers may fail to quell speculation about restructuring of Greece’s debt.
Greece’s plead for the financial aid and Obama’s concern of another recession given a failure to raise the US debt ceiling, may give a mixed impact on dollar’s move. While concern about debt restructuring may continue to sell Euros, the debt limit is another way to weaken the dollar.
However the Euro zone data releases are likely to be in favor for the metals although US releases can have a mixed impact.
The Indian rupee at present is depreciating which may support prices. Hence it is recommended to be on the long side for a shorter target as concern over the Euro is likely to decide the metals move.
Courtesy: Karvy Commtrade Ltd.
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