Silver Gains Ahead of US consumer Inflation Data

Silver futures rallied in the domestic market on Tuesday as investors and speculators booked fresh positions in the precious metal ahead of key US consumer price data which may dictate the likely trajectory of US interest rate movement this year.

Data released on Monday showed that manufacturing activity in New York shrank in May following three months of expansion amid weakness in new orders and inventories, signaling softness in the American manufacturing sector.

Any rate hikes by the Fed will be bad news for Gold, which loses its sheen during a rising interest rate scenario.

At the MCX, Silver futures for July 2016 contract is trading at Rs. 41,170 per Kg, up by 0.45 per cent, after opening at Rs. 41,157, against a previous close of Rs 40,987. It touched the intra-day high of Rs. 41,222.

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