Tuesday, December 8, 2015

Silver futures Plunged During Noon trade in the Domestic Trade

Silver tips - Silver futures were trading in the red during noon trade in the domestic market on Tuesday as investors and speculators stuck to a cautious stance amidst heightened speculation that the US Federal Reserve may raise interest rates next week, for the first time since 2006, dimming the lure for the bullion as a store of value. Backing up robust November jobs data which showed a strengthening labour market recovery in the world’s biggest economy, a top Fed official on Monday also dropped a strong hint of a rate lift-off at the Fed’s two-day policy meet beginning next Tuesday.

A slump in oil prices to a seven-year low signaled weaker global inflationary pressures, dimming the appeal of the precious metal, a hedge against rising prices. Oil prices have hit the freefall mode on concerns that the OPEC’s decision to refrain from limiting output to control prices may aggravate a supply glut.
At the MCX, Silver for March 2016 contract is trading at Rs 34,606 per kg, down by 0.47 per cent, after opening at Rs 34,725, against the previous closing price of Rs 34,771. It touched an intraday low of Rs 34,552