On Wednesday silver futures plunged Rs 546 to Rs 41,202 per kg as participants cut down their bets on low spot demand. On the Multi Commodity Exchange, silver contracts for May delivery tumbled by Rs 546, or 1.31 per cent, to Rs 41,202 per kg in a business turnover of 3,224 lots.
According to the latest trade data from the CFTC, only one week after significant liquidation, shifting sentiment in financial markets is prompting investors to jump back into the gold space.
On Friday gold and silver prices dived on domestic bourses after surveys showed Chinese manufacturing activity held steady in January and services firmed. Factory activity in China stalled in January, with the outbreak of the new virus adding to risks facing the economy despite easing trade tensions, while growth in the services sector activity quickened.
The gold price is seeing renewed selling pressure as U.S. consumer confidence pushes higher, significantly beating expectations. Tuesday the U.S. Conference Board said its consumer confidence index for January rose to a reading of 131.6, up compared to December’s revised reading of 128.2. According to consensus forecasts, economists were expecting to see a reading of 128.2.
On Tuesday bullion counters slipped as sentiment improved and traders moved towards riskier assets after the United States said it could renegotiate the nuclear deal with Iran. US President Donald Trump is confident that he could still renegotiate the 2015 nuclear deal with Iran, despite the killing of Iran’s senior military commander Qassem Soleimani, White House advisor Kellyanne Conway said on Monday.
On Tuesday gold price jumped Rs 191 to Rs 39,239 per 10 gram in the national capital following a rally in global prices, according to HDFC Securities. Gold rises Rs 191 to Rs 39,239 per 10 gram on positive global trends; silver prices jump by Rs 943Representative image.
On Friday gold and silver ebbed in morning trade as sentiments on the Street improved. Equity indices also continued their rally as they touched new record highs. MCX Gold (Feb) futures were down 0.27 per cent to Rs 38,005 per 10 grams and MCX Silver (Mar) futures shed 0.46 per cent to Rs 44,590 per kg.