Silver Futures Surge Rs 4,545 to Four-Week High of Rs 2.26 Lakh Amid Global Market Gains
Silver futures jumped by Rs 4,545 to hit a four-week high of Rs 2.26 lakh per kg on Wednesday, tracking gains in global markets amid hopes of easing inflation pressures.
The most-traded September contract of the white metal surged by Rs 4,545, or 2.05 per cent, to Rs 2,26,160 per kg on the Multi Commodity Exchange (MCX). The metal had traded around these levels on July 9 this year when it was quoted at Rs 2,26,377 per kilogram on the commodities bourse.
“Silver prices are trading higher as investors weigh reports of a possible deal to reopen the Strait of Hormuz,” said Renisha Chainani, Chief Research Officer (CRO) at Augmont.
Such a move would help calm inflation worries and reduce the odds of the Federal Reserve raising interest rates in the near term, she added.
In the global markets, Comex silver futures for the September contract rose nearly 3 per cent to USD 61.85 per ounce in New York.
Analysts said silver also drew support from a softer inflation outlook, which could improve the appeal of bullion by reducing expectations of tighter monetary policy.
Meanwhile, Qatar said regional mediators were making progress in efforts to end the US-Iran conflict, although Tehran rejected President Donald Trump’s assertion that negotiations had already begun.
Market participants have turned their attention towards fresh US labour data, including ADP’s July private payrolls report due later in the day for more clarity on the Federal Reserve’s next move on monetary policy, Chainani said.
