Silver fell during Morning Trade in the Domestic Market
Silver futures fell during Morning trade in the domestic market on Wednesday as investors and speculators exited positions in the precious metal amidst growing speculation that the US Federal Reserve is moving closer to raising interest rates, dimming the lure for the bullion as a store of value.
A jump in US new home sales to more than an eight-year high in April 2016 signaled that the world’s biggest economy was in strong shape and can withstand further interest rate hikes. Being a non-interest bearing asset, silver tends to lose sheen during a rising interest rate scenario.
At the MCX, Silver futures for July 2016 contract is trading at Rs. 39,235 per Kg, down by 0.26 per cent, after opening at Rs. 39,419, against a previous close of Rs 39,337. It touched the intra-day low of Rs. 39,225.
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