Silver prices fell to 3-month low on subdued safe haven demand as easing fears of Delta variant of COVID19 improved appetite for risky assets. Firmer dollar and rising treasury yields also pressured the precious metal.
* Most global equity gauges rebounded last week as fears of corona virus delta variant eased. US Dow Jones Industrial Average index and European peers gained. In Asia, China’s SSE gained while India's Sensex and Japan’s NIKKEI dipped to negative turf.
* US Treasury Secretary Janet Yellen urged lawmakers to increase or suspend the nation's debt limit as soon as possible, or the Treasury Department would need to take "extraordinary measures" to prevent a US default.
* Euro zone business activity expanded at its fastest monthly pace in over two decades in July as the loosening of more COVID-19 restrictions gave a boost to services but fears of another wave of infections hit business confidence.
* US dollar gained 0.24 percent against the currency basket and closed at 92.912 marks in the last week.
* Euro shed against dollar by 0.29 percent last week. Japanese Yen eased 0.42 percent while Chinese Yuan eased 0.04 percent.
* Indian Rupee gained 0.24 percent against US dollar to 74.425 marks.
* LBMA spot silver shed 1.95 percent last week whereas COMEX Silver shed 2.17 percent.
* MCX active silver futures fell 1.9 percent last week.
* India’s spot price of silver in Mumbai shed 3.17 percent.
* Global silver demand is projected to achieve a six year high of 1.025 billion ounces in 2021—Silver Institute
Prices continue to be choppy with negative as its key fundamentals remain put pressure on the commodity. A strong US dollar, steady equities and a recovery in global economic outlook reduced its safe haven appeal and thus its investment demand. However, major selloffs likely to be halted as post Covid 19 industrial recovery in China likely to trigger physical demand from the country.
COMEX: Expect a choppy trade inside $28.50-23.80 levels initially and breaking any of the sides would suggest fresh directional moves to the commodity.
MCX: Prices to track its overseas sentiments and expect a range bound with mild negative bias trading in near future. Meanwhile, a feeble Indian Rupee may restrict major selloffs in the counter.
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