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| MCX Silver |
Rebounds of new home sales and the housing sector has thrown some light over the economic outlook of the US, weigh on the metal’s price.
Global equities stumbled yesterday despite the housing sector rebounded in the US.
The dollar index has dropped against a basket of major currencies and the weakness of dollar pushed the metal to record high.
The I-share silver holdings slid a bit to 11150.3 tons from11183.69 tons as on 21st April.
Outlook:
The COMEX May future is currently quoting $45.385, down by $1.74 from the previous closing and the dollar index at present is at a strong note. The Asian equities are trading mostly at downside.
As discussed in Gold’s outlook, the probable increase in the capital adequacy ratio by China will curb the loan growth which may hamper corporate activities. This may also help to battle the inflation which is a negative catalyst for the metal’s price move.
The data yet to release from the US in the form of consumer confidence is likely to boost up which will again put some pressure on silver. Indian rupee is depreciating at the moment which may restrict some early losses.
Hence, silver is likely to be range bound today with bias towards downside as the price decline has taken place due to the profit taking followed by the increase in volume but open interest has came down in the MCX.
