The unique properties of silver make it a very useful “Industrial Commodity”, despite being classed as a precious metal. Demand for silver is built on industrial uses like photography, silverware, automobile industry, silverware, etc. More than 50 per cent of total mined silver comes from Mexico, Peru, China and Australia. China is one of the largest producer and consumer of silver as an industrial metal.
Chinese economy is on down trend from last one year and which is impacting prices of all industrial metals including silver. On the other side US economy is doing well and recent US Federal reserve rate hike is on the same way and which is also signalled fresh round of selling precious metal prices i.e. Gold and Silver. Looking to the performance of US economy we are expecting US Federal reserve could do at-least one more rate hike in 2017.
Dollar Index is also sustained above crucial level of 95 and currently trading above 97 level which is also negative for global commodities. After reaching to all time high in 2011 silver is unable to find it’s way. Silver prices are continue in down trend after 2011 rally and on every upside we have seen strong selling pressure in international as well as domestic market.
In 2017 Silver has tested high of Rs 43,424 per Kg. In Feb. On daily closing level. In June month we have seen fresh round of selling in silver from the level of 40,777 and which is currently trading below 38,500/-. In international market silver is unable to hold $17 per troy ounce and which is currently trading around $16.62 per troy ounce. Looking to the current fundamentals and lower demand from china we are expecting the pressure remain continue in silver prices in international as well as domestic markets.
Silver is unable to give price breakout above Rs 40,500/- per kg. And crashed vertically once again. On daily price chart silver has broker important price support of Rs 38500 per kg. Last week….