Silver Rises to $18.18 in Asia

Source:

"Silver gained nearly 8 cents to trade at $18.18/oz. in Asia."

Silver traded firm in most of the sessions on Friday but pared down during closing hours, tracking losses in gold. U.S. silver futures for September delivery closed .10% down at $18.10/oz. Base metals also pared some of its gains and closed only 0.2% higher on LME.

Facts

The euro didn't move much after the stress test results and changed hands at $1.2909 on Friday. The dollar index closed 0.16% lower at 82.464. The benchmark MSCI world index for stocks ended 0.66% higher.

iShares silver trust maintained its silver holdings at 9185.29 MT yesterday. MCX silver futures for September month posted humble gains and gained merely 0.4% to close at Rs. 29.129/kg. Prices gained further on Saturday and closed marginally higher at Rs. 19.143/kg.

Outlook

Silver gained nearly 8 cents to trade at $18.18/oz. in Asia on Comex's Globex platform. The dollar index is little changed. Asian stocks, except Chinese stocks, are trading firm on account of a greater-than-expected jump in Japanese exports and South Korea's GDP also improved.

Chinese stocks are facing headwinds from a possible default of 23% of total loans worth of 7.7 trillion yuan, which they lent to local governments for infrastructure projects. However, silver is expected to track gains in gold. Moreover, increasing housing sales in the U.S. may be positive for silver prices during the day.

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