Silver futures on Globex platform of Comex was seen trading down by 4.67% at $21.320 per troy ounce as of 10.10 AM IST on Monday.Speculation that US Federal Reserve may end its USD85 billion per month bond-buying program, might have influenced investors sentiments.
MUMBAI : Bullion futures in the international market are trading negative and silver prices fell to the lowest since 2010. Bullion prices shrunk to their lowest in four years as investment demand recorded a slump amid firm equities.
Silver futures on Globex platform of Comex was seen trading down by 4.67% at $21.320 per troy ounce as of 10.10 AM IST on Monday.
Comex gold futures are also down by 1.59% at $1343.05 per troy ounce as of 10.11 AM IST on Monday.
“Silver is trekking a similar path to gold,” Yang Xuejie, an analyst at Galaxy Futures Co., a unit of the brokerage controlled by China’s sovereign wealth fund said to Bloomberg.
“Investment demand is slowly falling and there are doubts about industrial demand, which is the primary driver.” he added.
Gold traders held 74,432 short contracts as of May 14, according to the US Commodities Futures Trading Commission.
Speculation that US Federal Reserve may end its USD85 billion per month bond-buying program, might have influenced investors sentiments.
Meanwhile, based on a simple regression analysis using data from 2003, Gold ETF outflows may cause downside risks of up to $75/oz in prices, Deutsche Bank has said in a report. If this turns out to be true, gold prices can touch $1282/oz from Friday levels of $1357/oz.
Deutsche Bank believes that the bulk of the drawdown in gold ETFs comes from institutional investors with, on Bank’s estimates, around two-thirds of the selling that is likely probably has already passed.
India bullion futures
Gold futures on India’s Multi Commodity Exchange (MCX) for June delivery was seen trading down by 1.39% at Rs.25477 per 10 grams as of 10.05 AM IST on Monday.
MCX silver futures for July delivery was also down by 4.09% at Rs.40885 per kilogram as of 10.05 AM IST on Monday.
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