Silver bulls take control

Silver bulls take control

02/08/2016 16:01

Silver futures jumped by more than 1 per cent during evening trade in the domestic market on Tuesday as investors and speculators booked fresh positions in the precious metal tracking a bullish trend overseas as a weaker dollar bolstered the lure for the bullion as an alternative asset.

Weaker dollar makes the precious metal cheaper for those holding other currencies, thus boosting silver demand.

Further, soft US economic data raised speculation that the US Federal Reserve may hold off further tightening of interest rates in the near-term, bolstering the lure for silver as a store of value. The gauge measuring US manufacturing fell to 52.6 In July from a one-year high of 53.2 in June, indicating slowing factory expansion.

At the MCX, silver futures for September 2016 contract is trading at Rs 48,334 per kg, up by 1.29 per cent, after opening at Rs 47,679, against a previous close of Rs 47,717. It touched the intra-day high of Rs 48,350 (at 15:57 hours).

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