Silver......
After trading a range bound manner for nearly 2 months, silver prices
finally got the downward direction. The white metal slumped below Rs
40000 per kg today as the upbeat US data released yesterday supported
the view that the Federal Reserve will slow the pace of monetary
stimulus this year.
MCX July silver futures tumbled to as low as
Rs 39325 per kg today. The metal had fallen by nearly 10% so far this
month; however the fall in prices has been curbed by the extra soft
Indian Rupee. The Indian Rupee has fallen by more than 5% so far this
month to low of nearly 60 per dollar. The counter should find support
near Rs 39000-37000 levels in the near term.
The international
silver futures have been hurt more severely due to sharp appreciation in
the US dollar. COMEX July silver futures tumbled below $19 an ounce,
falling nearly 17% so far in June 2013.
The dollar-denominated
commodities felt the pinch from a rise in the U.S. dollar against key
rivals, with the greenback looking for a sixth consecutive day of gains.
The buck rose Tuesday after a report showed U.S. sales of new homes
rose 2.1% in May, the fastest rate since mid-2008, and the Case-Shiller
April home-price index jumped 2.5% in April, the largest monthly growth
on record.47070
Federal Reserve Chairman Ben Bernanke last week
indicated the central bank may slow the pace of bond buying as early as
this year if the economy continues to improve within its forecasts. The
Fed currently buys $85 billion a month in U.S. Treasurys.
Later
Wednesday, the U.S. Commerce Department is slated to release the third
estimate of gross domestic product for the first quarter.
Source by Commodity Insights
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