As industrial commodities remain under pressure due to lack of China's fiscal stimulus and concerns over trade friction, silver will rely on geopolitical development for its upward traction
The metal consolidated its losses on Tuesday and was trading nearly 0.18 per cent up at $30.36 at the time of writing this report
With China's fiscal stimulus failing to excite investors, Silver is likely to be under pressure in the short term, even gold and copper prices weaken
The Fed cutting rates despite citing strong growth will put the focus back on inflation. The US bonds are quite volatile. Yields are likely to spike again on growth expectations and deficit concerns
Silver rate today: Silver is likely to do better than gold in the short-term in case Harris wins the presidential race
Gold and silver ETFs from Nippon India Mutual Fund, the largest in the category, alone recorded a combined volume of Rs 228 crore
Silver rate: The metal is expected to be highly volatile and choppy as this week is packed with crucial data out of both China and the US, and the next week will be about the US presidential elections
Spot silver at the time of the MCX closing was trading at $33.67, down around 0.10 per cent on the day.
Silver rate today: Unless we see a sharp decline in gold or copper prices, silver is likely to trade with a bullish bias
Silver is expected to trade with a positive bias in near-term on the US presidential election uncertainties, healthy ETF inflows, and strong demand in India amid geopolitical tensions
Surging US Dollar Index and tumbling bond prices are acting as headwinds for the metal as the US rate cut pace has become somewhat uncertain in the short term. Dip buying is preferred.
On Tuesday, silver surged sharply higher on an unexpectedly huge stimulus package announced by China's Central Bank and the Chinese authorities.
Spot silver was extremely volatile in the wake of the US Fed cutting rates by 50-bps at its FOMC meeting concluded on September 18.
On Thursday, spot silver rallied to a nearly three-week high on Fed rate cut bets and firmer industrial commodities.
Silver outlook and trading strategy today, June 26, 2024: Spot Silver, at the time of the MCX closing, was trading at $28.90, down 2.45 per cent for the day on Tuesday
Silver strategy: Silver is expected to range trade ahead of the US CPI data (May) to be released today. A decisive breach of support at $28.84 may lead to additional sharp decline in the near-term
COMEX silver inventory fell from 299.04 Moz to 298.46 MOz and remains at the highest level since January 2023
On the other hand, gold prices have seen a rise in the last few months amid steady demand, especially from the global central banks
Silver at $30.12 was down over 2 per cent at the time of MCX closing as the corresponding MCX July contract at Rs 90305 was down 2.91 per cent on the day
Weak job data bolstered the speculation that the weakening economy would force the US Federal Reserve to cut rates