Silver spot steadied slightly below the 3-month high hit in May - Geojit Financial
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SILVER
Silver spot steadied slightly below the 3-month high hit in May. A languishing dollar, higher inflation numbers from US and China lifted the sentiments of safe haven assets.
Global Economy
* Global equities displayed mixed signals last week. US Dow Jones Industrial Average index settled 0.80 percent lower. European peers were mixed. India’s Sensex gained 0.72 percent while Japan’s NIKKEI and China’s SSE composite index moderated.
* US inflation rate accelerated to 5 percent in May of 2021 from 4.2 percent in April. It is the highest reading since August of 2008.
* The China's annual inflation rate jumped to 1.3 percent in May 2021, from 0.9 percent a month earlier. This was the highest reading since September 2020
* China's trade surplus was at USD 45.5 billion in May 2021, compared to a surplus of USD 61.9 billion in the May of 2020.
Currencies
* US dollar gained 0.46 percent against the currency basket and closed at 90.555 marks in the last week.
* Euro shed against dollar by 0.48 percent last week. Japanese Yen eased 0.15 percent while Chinese Yuan ticked lower.
* Indian Rupee fell 0.52 percent against US dollar to 73.24 marks.
Silver
* LBMA spot silver gained 0.40 percent last week whereas COMEX Silver up by 0.90 percent.
* MCX active silver futures gained 0.96 percent last week.
* Global silver demand is projected to achieve a six year high of 1.025 billion ounces in 2021—Silver Institute
Outlook
Concerns over investment demand continue to hit the sentiment of the commodity. A recovery in US greenback and strong global equities limiting the metal’s demand as a safe investment. However, possible industrial demand recovery from China, EU and US likely to dent major downside in the metal.
COMEX: Inability to move past the $30 resistance, prices remain choppy with mild negative bias. However, breaking he support of $23.80 is needed to trigger major selling pressure in the counter.
MCX: Initial trades are most likely inside Rs 74500-69500 levels and breaking any of the sides would suggest fresh short term direction to the commodity.
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