Among other precious metals, silver for December-delivery lost 1.8% to settle lower at $23.40/oz yesterday.
Silver took a fall on account of lowering other precious metals. A correction in base metals (LME down by 2.60%) also supplemented the fall in silver prices.
Equity markets also remained lower yesterday.
Key Observations
The dollar advanced 0.57% against a basket of six major currencies to close at 78.149 levels. U.S. reported a better-than-expected increase in durable goods orders and new home sales. U.S. stocks slipped, led by fall in energy stocks after weekly oil inventory numbers showed U.S. crude oil stockpiles rose by 5 million barrels.
The benchmark MSCI World Index for stocks closed down by 0.81%. IShares Silver Trust’s silver holdings were unchanged at 10224.05 MT. MCX silver futures for December-delivery also fell but the decline was limited by weaker rupee which slid as much as 0.42% to 44.6250. MCX silver futures closed 1.09% lower at `35,579/kg yesterday.
Outlook
Silver is considerably up at $23.66/oz on Globex platform in Asian hours as the dollar index is down by nearly 0.4% which is causing gains in precious metals.
Silver may later track gold down amid Eurozone confidence measures are looking weak. Investors may continue to take profits away at higher levels.
We expect silver to erase its gains in later sessions.
