Silver futures jumped by Rs 2,670 to Rs 2.19 lakh per kg on Tuesday tracking firm global trends amid optimism over industrial demand ahead of key US economic data that could offer clues on Federal Reserve’s interest rate trajectory. On the Multi Commodity Exchange, the white metal for September delivery increased by Rs 2,670, or 1.23 per cent, to Rs 2,19,416 per kilogram from Monday’s closing level of Rs 2,16,746 per kg. “Silver edged higher as investors weighed conflicting signals over possible talks between Washington and Tehran, while awaiting a run of US labour market reports this week for clues on the Federal Reserve’s rate path,” said Renisha Chainani, Chief Research Officer (CRO) at Augmont. Meanwhile, US President Donald Trump said discussions with Iran were underway, calling it a “last chance” for Tehran to accept a deal ending the five-month war. Iran, however, denied that any negotiations were taking place or planned. In the overseas market, Comex silver futures for the September contract rose 2.15 per cent to trade at USD 59.09 per ounce in New York.
“The upside move in silver came from stronger-than-expected US manufacturing data, with July factory activity expanding at its fastest pace in more than four years, highlighting continued economic resilience and underpinning industrial demand for the metal, Pinky Yadav, Commodity Fundamental Analyst at Choice Broking, said. Meanwhile, New York Fed President John Williams said he remains hopeful that inflation will ease gradually, but stressed that the US central bank would not hesitate to raise interest rates if needed. According to analysts, commodity markets is likely to remain volatile as investors track key US labour market data, including the ADP employment report and the nonfarm payrolls numbers later this week, for fresh cues on the Fed’s monetary policy outlook.
