Silver prices are rising continuously, spurred by a threat of a downgrade of the United States' triple-A credit rating.
The gold silver ratio reached lowest since 1983 which made silver a cheaper investment than gold.
The inflation amid rising crude prices and weaker dollar is supporting prices. We expect bullish sentiment to continue in silver. Mena unrest may further boost metal.
The gold silver ratio reached lowest since 1983 which made silver a cheaper investment than gold.
The inflation amid rising crude prices and weaker dollar is supporting prices. We expect bullish sentiment to continue in silver. Mena unrest may further boost metal.
The steady physical market in Asia and consistent rise of holdings in the world's largest silver-backed exchange-traded fund, indicate intact investor's interest in metal.
The further weakening dollar and persistent crisis in Middle East may support metal where as the profit booking at higher level may cap gains.
The further weakening dollar and persistent crisis in Middle East may support metal where as the profit booking at higher level may cap gains.
Spot Gold prices traded higher by 0.5 percent on Wednesday and marked a new record above $ 1500/Oz. The yellow metal touched an intra-day high or $1505.70/oz and closed at $1500.35/oz yesterday.
Prices received support from dollar weakness and the worsening debt crisis in the US and the Europe. This factor has increased the safe haven demand for gold. Rising crude oil prices fueled inflation rears which boosted the yellow metal demand as an inflation-hedge.
However, on the MCX, gold prices declined around 0.2 percent on account of Rupee appreciation. Prices touched an intra-day low or 21,740/10 gms and closed at 21,773 on Wednesday.
Spot silver prices rallied 3 percent on Wednesday, mainly on the back of dollar weakness. Prices touched an intra-day high of $45.37/oz and closed at $45.20/oz in yesterday's trading session.
As silver is also an industrial metals it also received support from uptrend in base metal prices yesterday. On the MCX, silver gained around 1.6 percent and hit an intra-day high of RS66, 664/kg on Wednesday.
Outlook
We expect gold to trade higher today, mainly on the back of falling dollar, rising debt concerns in EU and Us which will increase safe-haven demand for gold. Additionally, rising crude oil prices will also boost gold demand as a hedge against inflation.
Prices received support from dollar weakness and the worsening debt crisis in the US and the Europe. This factor has increased the safe haven demand for gold. Rising crude oil prices fueled inflation rears which boosted the yellow metal demand as an inflation-hedge.
However, on the MCX, gold prices declined around 0.2 percent on account of Rupee appreciation. Prices touched an intra-day low or 21,740/10 gms and closed at 21,773 on Wednesday.
Spot silver prices rallied 3 percent on Wednesday, mainly on the back of dollar weakness. Prices touched an intra-day high of $45.37/oz and closed at $45.20/oz in yesterday's trading session.
As silver is also an industrial metals it also received support from uptrend in base metal prices yesterday. On the MCX, silver gained around 1.6 percent and hit an intra-day high of RS66, 664/kg on Wednesday.
Outlook
We expect gold to trade higher today, mainly on the back of falling dollar, rising debt concerns in EU and Us which will increase safe-haven demand for gold. Additionally, rising crude oil prices will also boost gold demand as a hedge against inflation.
