Though investors continue to flock to gold amid easing monetary policies, they didn’t forget silver which escalated to fresh 30-year high of above $23/oz.
Silver for December delivery gained 1.35% to $23.20/oz yesterday. Silver is taking an advantage of being a cheaper alternative to gold.
Investment demand has been strong in the last few days and continues to boost silver prices.
Key Observations
The dollar continues to be dismantled by traders around the globe. The U.S. unit fell 0.47% against a basket of the world’s six major currencies.
Stocks traded higher in Asia and Europe but lost steam in the U.S. after reports showed a decline in private-sector jobs in September. However, the benchmark MSCI World index for stocks closed 0.53% up.
Shares Silver Trust saw a further increase in its silver holdings which jumped about 67 MT to 9944.14 MT. On MCX, silver futures for December-delivery closed 0.81% up at `34,378/kg. Rupee appreciated by 0.4% to 44.5150/USD.
Outlook
Silver prices took a giant leap of nearly 30 cents to $23.35 in Asian sessions, taking cues from higher gold prices.
Silver is more volatile than gold as investors are increasingly seen resorting to silver as a cheaper alternative to currency debasement and rising inflationary fears. Today’s industrial data from the UK and Germany are supportive for silver prices as the metal is also tied with economic activities and thus tracks economic developments.
KCTL recommends buying silver for the day. Investors should take care of rupee movements which may limit silver’s upside on MCX platform.
