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Silver prices in the LBMA spot platform rebounded for a second week as the US dollar Index stalled after recent revival awaiting further cues from Fed.

Global Economy

* Global equities displayed mixed signals last week. US Dow Jones Industrial Average index gained. European peers were mixed. In Asia, India’s Sensex, China’s SSE and Japan’s NIKKEI dipped to negative turf.

* US non-farm payrolls increased by 850000 jobs in June, the strongest job growth in 10 months. Unemployment rate fell to 5.9 percent.

* US ISM Manufacturing PMI edged down to 60.6 in June of 2021 from 61.2 in May.

* China's official NBS Manufacturing PMI edged down to 50.9 in June 2021 from 51.0 a month earlier.

Currencies

* US dollar gained 0.41 percent against the currency basket and closed at 92.226 marks in the last week.

* Euro shed against dollar by 0.58 percent last week. Japanese Yen eased 0.24 percent while Chinese Yuan eased 0.27 percent.

* Indian Rupee fell 0.41 percent against US dollar to 74.512 marks.

Silver

* LBMA spot silver gained 1.48 percent last week whereas COMEX Silver up by 1.53 percent.

* MCX active silver futures gained 1.83 percent last week.

* India’s spot price of silver in Mumbai shed 0.87 percent.

* Global silver demand is projected to achieve a six year high of 1.025 billion ounces in 2021—Silver Institute.

Silver prices rebounds

Sentiments in precious white metal where bolstered by the expectations that the monetary tightening by US Federal reserves may not be earlier than expected. The lingering worries are about the US labor market health and rising inflation in key economies. Regardless of the unexpected rise in monthly job numbers in the US non farm sector, a slight uptick in the unemployment rate added concerns in the market over a steady economic recovery.

The spot prices of silver in LBMA platform gained 1.48 percent to USD26.46 per troy ounce last week. Silver spot prices in India’s domestic Mumbai market was down by 0.87 percent to Rs.68000 per kilogram last week. In COMEX platform, the silver futures gained 1.53 percent WoW and settled USD26.48 per troy ounce last week. Near month MCX silver futures prices was gained 1.83 percent WoW and settled at Rs.69118 per kilogram.

US Dollar steadied, overlooks Fed minutes

The US dollar steadied against its key rivals after the recent revival from monthly lows. The attention has now moved to the minutes of Federal Reserve’s June months policy meeting. The Fed’s open market committee had signalled a gradual tapering of the present accommodative stance in June session. The market players are cautiously awaiting for clues on Fed’s next move. Meanwhile, the meeting minutes of European Central Bank also fall this week.

Silver Demand Expected 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 an analysis published by the Silver Institute. Strong investment demand is expected to push silver prices higher in 2021.

iShare Silver backed ETFs declined in June

Total physical holdings of Silver backed ETFs with iShare silver trust declined by 3.21 percent in June after gaining 1.62 percent in May. The total physical holdings in silver with iShare silver trust is more than 558.173 million troy ounces in the end of June.

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 their bullish positions and reduced bearish positions in COMEX silver contracts in the week ended July 2, while the net long positions increased.

Gold - Silver Ratio at 67.48 ounces

Gold/Silver Ratio is the amount of silver it takes to purchase one ounce of gold. One ounce of gold was at 67.48 ounces of silver on Friday.

Outlook

Short term trend continue to be choppy with mild negative as its safe haven demand remain dented due to optimistic global economic outlook. A recovery in US greenback and a steady equities too dampen the investment sentiment of the commodity. However, recovering industrial demand and rising inflation concerns likely to restrict major downside in the commodity.

COMEX: Expect a choppy trade inside $29.90-23.80 levels initially and breaking any of the sides would suggest fresh short term directional moves in the commodity.

MCX: If the support of Rs 67000 remain hold, there are chances of recovery upticks in the counter. Anyhow, major rallies can be seen only a close above Rs 74000. A close below Rs 66000 is a short term selling signal.

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