SILVER: Performance So Far

As on 26th Aug, Spot Silver extended declines by around 0.8% to $ 18.90 an ounce from $19.08 an ounce as on 19th Aug. MCX Silver September futures ended at Rs.55207 per kg on 26th Aug, down by 4% from Rs. 57,665 per kg as on 12th August.

Benchmark 10-year Treasury yields came within one basis point of 3% on bets that US policy makers may reiterate their hawkish stance at the upcoming Jackson Hole symposium while strength in the dollar also weighed on the white metal complex.

Money managers continued to reduce their overall exposure to the white metal as bullish bets have been pared back. The speculative net non commercial positions showed funds turning net short in the same for the second time since July while the Long/Short ratio came down to below 1 for the week ending 23rd Aug. which indicated bears having an edge over bulls.

Outlook for the week

All eyes, will be on China macro data due to be released this week, along with Non farm payrolls number to be out on Friday as lower readings could reiterate Fed commitment towards raising interest rates. On the other hand any contraction seen in PMI numbers from China could pull down Silver futures further during the week.

Silver may find it difficult to see upside bias during the initial week as it expected to continue to find supports at around $ 18.15 – 18.20 per ounce. MCX Silver may continue to trade with negative bias as breach of strong supports at around Rs. 54500 / Kg. last week has opened way towards Rs. 52,300 levels in September Contract.



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