India silver edges higher on weak dollar index

Silver revived superbly in the evening session yesterday after the Greece finance leader assured to find out solution for the region’s crisis. After a sluggish morning session the faltering dollar helped the metal to revive and futures in both Comex and MCX settled at a positive tune.

The dollar index settled at the prior closing level, eroding the initial gain as assurance came from the Greek finance minister about a solution to the crisis, led the Euro strong.

After the Asian equities closed almost all at a downside, the US stocks rallied, snapping the treasuries gain although Europe remained at a bit downside concerning over the assurance to work out.

The I-share silver holdings slashed to 9626.1 tons from 9639.74 tons from as on 17th June raising the concern about investment demand for the metal.

OUTLOOK:

At the Globex platform silver is seen quoting down by $0.226 at 35.845, but is expected to revive. As discussed in Gold’s outlook, the Euro is appreciating on assurance of Greek finance minister’s quote to find out a solution over the crisis.

The US treasuries also lowered on concern of Greece that they may be able to tackle the debt. Asian equities are tracking the cues from the US and are trading at a positive note which may also support the metal.

Economic releases in the evening may show a fall in existing home sales in May, on anticipation of which dollar may remain under pressure for the day. Also, before the Fed announces its stance over the monetary policies in a two day meeting starting tomorrow, anticipation of keeping the interest rate at the prior level, dollar may lose its value on the back of which silver may shine.

However, volatility can not be ruled out in silver as the faltering investment demand for the metal is a matter of concern due to the descending global industrial activities. Hence, silver is likely to remain at a range bound tending towards an upside for the day.

Source: http://www.commodityonline.com/futures-trading/technical-reports/India-silver-edges-higher-on-weak-dollar-index-24363.html