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Silver prices eased amid strengthening U.S. dollar and rising U.S. treasury yields that weighed the sentiments in precious metals.

* Silver prices in LBMA eased 0.10 percent and COMEX silver inched up 0.18 percent last week

* International sales of silver bullion coins in Q1 fell nearly 13% percent in the first quarter from Q1 2021.

* Silver mine production increased to 853.3 Million ounces in 2021, representing a 3% YoY increase.

Silver prices eased on firmer U.S. Dollar

Silver prices languished near recent lows amid strengthening U.S. dollar that made the dollar denominated silver expensive for holders of other currencies. Steady rebound in U.S. 10 year treasury yields also weighed the sentiments in precious metals silver. Meanwhile, depression worries for this year amid monetary tightening from key central banks and falling equities underpinned precious metals on safe haven grounds.

U.S. Dollar index strengthened on strong inflation data

U.S. Dollar index strengthened on strong inflation data The U.S. dollar index returned to near the 20 year highs hit during mid-May, as the strong inflation data from month of May cemented the prospects of Federal Reserves rate hikes. U.S. 10-year Treasury yields rise to highest since May 9 weighing pressure on bullion

World Bank cuts global growth outlook to 2.9% in 2022

According to the World Bank’s latest Global Economic Prospects report, global growth is expected to slump from 5.7 percent in 2021 to 2.9 percent in 2022, significantly lower than 4.1 percent that was anticipated in January. It is expected to hover around that pace over 2023-24, as the war in Ukraine disrupts activity, investment, and trade in the near term, pent-up demand fades, and fiscal and monetary policy accommodation is withdrawn. As a result of the damage from the pandemic and the war, the level of per capita income in developing economies this year will be nearly 5 percent below its pre-pandemic trend.

Global silver production and demand increased in 2021-Refinitive

Silver mine production increased to 853.3 Million ounces in 2021, representing a 3 percent year-on-year increase. Physical demand increased 13 percent to 1,037.2 million ounces in 2021. And while jewellery and silverware fell short to equal the pre-pandemic level, it was industrial and retail investment demand that surpassed the pre-pandemic level. Investment demand in the form of coins and bars increased 21 percent to 249.1 million ounces, the highest since 2015.

iShare Silver ETFs holdings continue decline in June

Total physical holdings of Silver backed ETFs with iShare silver trust declined by 1.96 percent so far in June after an outflow of 3.31 percent in May. The total physical holdings in silver with iShare silver trust is more than 545 million troy ounces in the week ended June 10.

COMEX Money Managers added net longs in Silver F&O

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

Outlook

A strong US dollar and higher treasury yields continue to tamper the safe haven status of silver like precious metals. More rate hike expectations from Central banks due to higher inflation and moderate physical demand from top consumers like China are also limiting the upside prospects of the commodity. However, any turnaround in global industrial activities may pick up some demand in the near future.

COMEX: Consistent trades below the support of $21.50 more liquidation pressure in prices can be seen. However, recovery upticks are expected only a close above $24.

MCX: A tight trade inside Rs 66000-57500 levels expected initially and breaking either the sides would suggest fresh short term direction in the commodity.

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