Silver Gets Momentum from Asian Equities

Source:

". . .a slower decline in pending home sales may render some positive cues to silver prices."

U.S. silver futures for May delivery stayed firm last week and closed 2.08% higher at $17.89/oz on Thursday. Gains were mainly imparted by platinum group metals and base metals.

Base metals' complex on LME moved up for the sixth consecutive day and closed 1.13% higher, which proved to be another trigger for silver prices to surge. Equities were up by nearly 1% on Thursday.

Shares reported its silver holdings declined by 61 MT to 9217.17 MT. MCX silver futures gained 1.46% on Thursday and 0.34% on Saturday. Markets were closed on Friday on account of Good Friday.

Outlook

Silver is 8 cents up at $17.97/oz on COMEX's Globex platform, while the Dollar Index is down by 0.35%. Silver is getting momentum from firm Asian equities, which are trading up followed by a solid job report on Friday from the U.S., which showed that economy created 185,000 jobs in March.

Today's economic data in the form of improving ISM non-manufacturing index and slower decline in pending home sales may render some positive cues to silver prices.

However, apprehensions regarding monetary tightening from Australia may cause some damage in the commodities markets. MCX silver futures may open flat to lower due to appreciating rupee.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe