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Silver prices recuperated from monthly lows on global platforms last week due to depreciating dollar and a technical bounce back.

SILVER

* Equity gauges exhibited mixed performance during the last week. US Dow Jones Industrial Average index was 1.95 percent up at the week’s close. European peers were also higher. China’s SSE composite index fell 0.97 percent. India’s Sensex shed 0.88 percent.

* Producer Prices Index in the US rose 4.2 percent YoY in March 2021, following a 2.8 percent increase in February. It was the largest advance in producer prices since September 2011.

* The consumer price index in China rose by 0.4 percent YoY in March 2021, after a 0.2 percent drop a month earlier. This was the highest reading since October 2020.

* China's Producer Prices Index rose by 4.4 percent YoY in March 2021, accelerating from a 1.7 percent gain in February.

CurrenciesSilver firm after recouping from monthly lows

Silver prices seen firm after reviving from almost three month lows. However, the sentiments were pressured by a jump in U.S. Treasury yields and a strengthening dollar.

Silver prices gained in major platforms

The spot prices of silver in LBMA platform gained 1.08 percent to USD25.24 per troy ounce last week. Silver spot prices in India’s domestic Mumbai market was up by 4.83 percent to Rs.67300 per kilogram last week.

In COMEX platform, the silver futures gained 1.51 percent WoW and settled USD26.29 per troy ounce last week. Near month MCX silver futures prices was up by 2.91 percent WoW and settled at Rs.66983 per kilogram.

Silver Demand Forecast to Rise 11 Percent in 2021 - Silver Institute

Led by industrial use and physical silver investment, global silver demand is projected to achieve a six year high of 1.025 billion ounces in 2021, according to the Silver Institute. Strong investment demand is expected to push silver prices higher in 2021. Physical investment, which covers silver bullion coin and bar purchases, is expected to achieve a six-year high in 2021 of 257 million ounces, as investors continue to add silver to their investment holdings. Already this year, holdings in exchange traded products reached a record level on February 3 of 1.18 billion ounces. One caveat: If the global economic recovery from the pandemic proves to be slower than expected, this could weigh on base metal prices, which could, in turn, encourage investors to reduce their exposure to silver.

iShare Silver backed ETFs declined in March

Total physical holdings of Silver backed ETFs with iShare silver trust declined by 6.62 percent in March after three consecutive monthly inflows. Moderate ETF outflows were witnessed in first week of April as well. The total physical holdings in silver with iShare silver trust is more than 574 million troy ounces.

COMEX Money managers add net longs in Silver F&O contracts

Data from U.S. Commodity Futures Trading Commission (CFTC) showed that the hedge funds and money managers increased their bullish positions and reduced bearish positions in COMEX silver contracts in the week ended April 10, and the net long positions increased.

Gold - Silver Ratio at 69.03 ounces

Gold/Silver Ratio is the amount of silver it takes to purchase one ounce of gold. One ounce of gold was at 69.03 ounces of silver on Friday. The ratio was merely steady through last week, and relatively lower considering past few months.

Outlook :

A swift turnaround in U.S dollar, stronger global equities and increased bond yields continue to hit silver’s status as a safe investment. Meanwhile, signs of economic recovery in key consuming countries like China from the pandemic related economic uncertainties may boost the physical demand later. Concerns over the next wave of the deadly pandemic may also offer lower level support to the commodity.

COMEX: 

Inability to move past the support of $22 there are chances of continuation of recovery upticks. However, it needs to clear $30 to strengthen the momentum.

MCX: 

Expect a choppy trade inside Rs 74000 - 55000 levels broadly and breaking any of the sides would suggest a fresh direction to the commodity.

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