Spot Silver rebounded to 4-week high on a softer - Geojit Financial
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Silver
Spot Silver rebounded to 4-week high on a softer dollar after week job numbers from US casted clouds over Fed’s tapering timeline.
Global Economy
• Downbeat employment data from US weakened sentiments in risky assets. US and European peers exhibited moderate performance last week while key Asian indices gained.
• US economy added 235000 jobs in August of 2021, well below expectation while unemployment rate declined to 5.2 percent.
• US ISM Manufacturing PMI increased to 59.9 in August of 2021 from 59.5 in July.
• China's Manufacturing PMI fell to 50.1 in August 2021 from 50.4 a month earlier, posting the weakest pace of increase in factory activity since February 2020.
Currencies
• US dollar eased 0.70 percent against the currency basket and closed at 92.035 marks in the last week.
• Euro gained against dollar by 0.75 percent last week. Chinese Yuan gained 0.28 percent while Japanese Yen ticked up 0.08 percent.
• Indian Rupee gained against US dollar by 0.28 percent to 74.239 marks.
Silver
• LBMA spot silver gained 2.90 percent last week while COMEX Silver gained 2.92 percent.
• MCX active silver futures gained 2.47 percent last week.
• India’s spot price of silver in Mumbai gained 0.63 percent.
• Physical holdings of Silver backed ETFs with iShare silver trust declined for a third straight month in August.
Outlook
Prices continue to be choppy with mild positive due to a steady US greenback and fading expectations over immediate tapering of US economic stimulus measures. A likely increase in industrial demand due to pick up in factory and economic activities from China, US and EU may also assist the metal. Meanwhile, weak safe haven demand amid rising equities and higher bond yields perhaps limit major rallies in the commodity.
COMEX: Expect a choppy trade inside $22.80-25.90 levels initially and breaking any of the sides would suggest fresh directional moves to the commodity.
MCX: Prices required to break Rs 61500 to continue further weak momentum. Else, there are chances of recovery upticks but major upside is seen at Rs 74800.
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