Rupee appreciation may add downside pressure on Silver

Written By Unknown on Jumat, 27 September 2013 | 14.03

Sushil Finance's report on bullion

Spot Silver prices declined by 0.37 percent in Yesterday's trading session on the back of fall in Spot gold prices coupled with strength in DX. Further, mixed global market sentiments along with the negative pending home sales data from US added downside pressure on the prices. However, sharp downside was cushioned due to favorable unemployment claims data from US.

In the Indian Markets, silver prices fell by 1.08 percent taking cues from Spot silver prices coupled with appreciation in the Indian Rupee. Silver prices touched an intraday low of 48322/Kg and closed at 48639/Kg.

Outlook:

We expect spot Silver prices to trade on the negative note on the back of weak economic data from the globe. Further, rise in worries over possible US federal debt default may add downside pressure on the prices. Additionally, uncertainty over the US Federal Reserve's stimulus outlook may keep prices under pressure. However, weakness in DX along with the rise in risk appetite in the global markets may cushion sharp fall in the prices. In the Indian Markets, appreciation in the Indian Rupee may add downside pressure on the prices.

We expect spot gold prices to trade on the negative note on the back of rise in risk appetite in the global markets which may keep investors away from safe haven. Additionally, uncertainty over the US Federal Reserve's stimulus outlook may keep prices under pressure. However, rise in worries over possible US federal debt default and weakness in Dollar Index may cushion sharp fall in the prices or even reversal may be seen. In the Indian Markets, appreciation in the Indian Rupee may add downside pressure on the prices.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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