Monday, December 21, 2015

Silver trading flat today 21 Dec, 2015
Silver futures were trading on a flattish note at the time of noon trade in the native market on Monday as traders continued to digest the US Fed Reserve’s decision last week to increase interest rates for the 1st time in almost a decade, dimming the appeal of the precious metal as a store of value, given that Silver doesn’t earn any interest.

The Fed exited it’s near-zero interest rate era, increasing the TGT(target) of its federal funds rate to 0.25 per-cent to 0.5 per-cent, from 0 to 0.25 per-cent previously, but the world’s top central bank indicated that the pace of rate tightening will be gradual and data-dependent, supporting the bullion.

Moreover, worries that a worsening commodity rout may reignite world wide deflation dented the appeal of Silver, a hedge against inflation.

MCX : Silver futures for March 2015 contract is trading at Rs 33,940 per kg, up by 0.02 per cent after opening at Rs 34,033, against the previous closing price of Rs 33,933. At 12 O 'Clock it reached the intra-day high of Rs 34,075.

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