Monday, May 9, 2011

India silver rises tracking global equities

India silver rises tracking global equities, silver prices in india may 9 2011, india silver forecast : Silver headed for the steepest weekly decline as an increase in margin requirements prompted investors to unwind their speculative positions. Silver futures collapsed brutally near about 28% last week.

Prices of silver collapsed for the fourth consecutive day, falling a brutal 7.99% to $36.23. Global equities also recovered a bit on the last session after the US has added more jobs than expected.

The dollar index gained by 0.87% in the last session to settle the week at 74.84. The I-share silver holdings further slid to 10253.75 tons from 10387.26 tons as on 6th May after huge sell offs in the last week .

Outlook:

At the Globex platform Silver is seen trading up by $0.81 at $36.095 and the dollar index at present is showing some feebleness against the majors. The Asian equities are trading flat, almost at a positive note.

As discussed in gold’s outlook, the gain in euro on the prospect that the region’s debt won’t keep the ECB from raising interest rate, will be helping the dollar index to remain under stress.

This on the other hand is a supportive factor for the metal. The economic releases from the German and Euro zone are also expected to be fair for the metal.

Overall it is likely to be a good day ahead for the silver and hence is recommended to be long for the metal.
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