Fed rate hike fears hit Silver
29/08/2016 16:32
Silver futures fell during evening trade in the domestic market on Monday as investors and speculators exit positions in the precious metal tracking weakness overseas as a stronger dollar curbed the lure for the bullion as an alternative asset. Stronger greenback makes gold more expensive for those holding other currencies, thus dimming demand. Fed Chair Janet Yellen on Friday reaffirmed faith that firmer labour markets will gradually bring back inflation to the central bank’s 2 per cent goal, paving the way for tightening-probably as early as next month, curbing the appeal for silver as a store of value. At the MCX, silver futures for September 2016 contract is trading at Rs 43,832 per kg, down by 0.33 per cent, after opening at Rs 43,866, against a previous close of Rs 43,977. It touched the intra-day low of Rs 43,559 (at 16:31 PM).
