Spot demand for the white metal could not restrict the sentimental risk factors amongst investors which led to a straight two day fall in future prices in both Comex and MCX division.
The dollar index settled 0.13% down from the previous closing at 75.36. The global equities shattered on the back of lesser than expected US housing data. Asian stocks also retreated.
The I-share silver holdings slipped to 10482 tons from 10534 tons as on 16th May.
Outlook:
At the Globex platform Silver is seen trading up by $0.77 at $34.26 and the dollar index at present is down by 0.237% at 75.19. The Asian equities are also showing confidence which may support the metals’ price.
As discussed in gold’s outlook, the Euro is appreciating against the dollar after the talk of Greek debt restructuring weighed on risk sentiment and put a floor on the metal’s price.
The minutes of the Bank of England and FOMC meeting will be keenly watched today which might direct the dollar’s move.
Silver may gain strength as signs of financial turmoil in Europe will be bolstering demand for the precious metal as a store of value as because Ireland may be facing a second bailout as the nation remains locked out of credit markets spooked by concerns that they are unable to pay their debts.
Obama administration is trying to cut long term deficit as part of plan to raise the legal limit on the national debt which may weaken the economic growth.
Overall, silver seems to remain up for the day with due considerations to the minutes of BOE and FOMC meetings.
Courtesy: Karvy Commtrade Ltd.
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