5 days ago
Silver Futures Rebound Nearly 2% as Oil Concerns Ease
Silver prices went up on Friday after falling earlier in the day.
The September contract in India rose to Rs 2,44,800 per kilogram.
The December contract also became more expensive.
Silver prices were helped by lower oil prices.
Cheaper oil reduced worries that inflation might rise.
This supported demand for precious metals such as silver.
Silver also rose in overseas markets to about USD 70.87 per ounce.
Investors were waiting to hear what Kevin Warsh would say about US interest-rate policy.
A tougher approach to inflation could strengthen the dollar and pressure silver prices.
September silver futures on the Multi Commodity Exchange rose Rs 4,149, or nearly 2%, to Rs 2,44,800 per kilogram.
The December silver contract gained Rs 3,760, or 1.52%, to Rs 2,51,569 per kilogram.
Silver recovered from early losses as lower crude oil prices eased inflation concerns and supported bullion demand.
September silver futures on Comex rose slightly more than 2% to USD 70.87 per ounce in New York.
Investors awaited Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium for monetary-policy signals.
- Who
- Silver traders and investors, with market commentary from Gaurav Garg of Lemonn Markets Desk.
- What
- Silver futures rose nearly 2% for the September contract to Rs 2,44,800 per kilogram on the Multi Commodity Exchange.
- Where
- On India’s Multi Commodity Exchange and in overseas markets, including New York.
- When
- Friday.
- Why
- Easing concerns about oil supply disruptions lowered crude prices and inflation worries, supporting bullion demand; investors also awaited US monetary-policy guidance.
Factors Supporting Silver
Factors Pressuring Silver
Oil prices and bullion demand
Factors Supporting Silver
Lower crude oil prices eased inflation concerns and supported demand for bullion.
Factors Pressuring Silver
The market remained cautious because changes in inflation expectations can affect precious-metals prices.
US monetary policy
Factors Supporting Silver
Clearer or less restrictive monetary-policy signals could reduce pressure on silver.
Factors Pressuring Silver
A hawkish stance on persistent inflation could raise Treasury yields and the dollar, putting pressure on silver.
Key facts
- September MCX contract
- Rose Rs 4,149, or nearly 2%, to Rs 2,44,800 per kilogram.
- December MCX contract
- Gained Rs 3,760, or 1.52%, to Rs 2,51,569 per kilogram.
- Global September contract
- Comex silver rose slightly more than 2% to USD 70.87 per ounce.
- Market driver
- Lower crude oil prices eased inflation concerns and supported bullion demand.
- Supply concerns
- Easing concerns over oil supply disruptions from West Asia supported silver prices.
- Key upcoming event
- Investors were watching Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium.
- Potential risk
- A hawkish stance on persistent inflation could lift US Treasury yields and the dollar, pressuring silver and gold.
Quotes
Gaurav Garg
Head of Research at Lemonn Markets Desk
“A hawkish stance, particularly on persistent inflation, could push US Treasury bond yields and the dollar higher, creating further pressure on assets such as gold and silver.”
deccanchronicle.com
Sources
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