Quote on Silver : Silver price falls in recent weeks Says Prathamesh Mallya, Angel One
Below "Quote on Silver" by Mr. Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One Ltd.
Silver price falls in recent weeks
Silver prices in the international markets have fallen from highs of $25/oz on 30th August to around $23 as on 8th September 2023.
On the mcx, silver price have fallen from highs of Rs.77000 on 30th August to around Rs.71880 as on 8th September 2023.
Fall in silver prices is on account or strengthening dollar as concerns about inflation and rate hikes were stoked by better-than-anticipated US services sector data. The US ISM Services PMI surprisingly increased to 54.5 in August, above expectations of 52.5 and indicating the greatest growth in the services sector in six months.
Markets are currently observing a hawkish pause this month from the Federal Reserve, which might indicate a potential rate increase at the next meeting.
Additional rate increases are still possible, according to European Central Bank officials, although Bank of England Governor Andrew Bailey stated on Wednesday that the central bank is "much nearer" to ending its rate-hike programme.
Moreover, Imports to China declined by 7.3% yoy in August 2023, compared with market estimates of a 9.0% drop and after a 12.4% plunge a month earlier. This was the seventh time of decrease in inbound shipments so far this year, due to persistently weak domestic demand.
Possible rate hikes in the US, Euro area, weak data from china and stronger dollar are factors causing fall in silver prices in the recent weeks
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