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Weekly Price Performance
Spot silver prices plunged 7 percent in last week. The white metal touched a weekly low of $ 29.6/oz and closed at $ 29.94 per oz on Friday. In the Indian markets, MCX silver prices rose 4.9 percent and closed at Rs. 58,286 /kg on Friday and touched a weekly low of Rs. 57,223 / kg. Depreciation in the Indian rupee however cushioned fall in the silver prices on MCX.
Factors that influenced silver prices
Bearishness in the spot gold prices. Worries amongst the market participants over the resolution of the fiscal cliff issue created bearish market sentiments. Strength in the DX and weakness in the base metals pack also weighed on the the silver prices. Positive data from the US and Chinese economy cushioned sharp fall in the prices.
ETF performance
On a weekly basis, holdings in the iShares Silver Trust gained by 1.77 percent to 10,045.85 tonnes till December 21st 2012 from previous week holdings of 9871.29 tonne till December 14th 2012 .
Outlook
Silver prices in the coming week is expected to trade lower owing to worries amongst the market participants over the resolution of the fiscal cliff issue. However, strength in the base metals pack might also act as a supportive factor for the silver prices. Markets might remain subdued due to Christmas and new year vacations. In the domestic markets depreciation in the Rupee might support an upside in the MCX Silver prices..
Weekly Technical Levels
• Spot Silver : Support $ 28.60/27.40 Resistance $31.25/32.75 (CMP: $30.28)
• Sell MCX Silver March between 59800-59900, SL - 61200, Target – 57850
Spot silver prices plunged 7 percent in last week. The white metal touched a weekly low of $ 29.6/oz and closed at $ 29.94 per oz on Friday. In the Indian markets, MCX silver prices rose 4.9 percent and closed at Rs. 58,286 /kg on Friday and touched a weekly low of Rs. 57,223 / kg. Depreciation in the Indian rupee however cushioned fall in the silver prices on MCX.
Factors that influenced silver prices
Bearishness in the spot gold prices. Worries amongst the market participants over the resolution of the fiscal cliff issue created bearish market sentiments. Strength in the DX and weakness in the base metals pack also weighed on the the silver prices. Positive data from the US and Chinese economy cushioned sharp fall in the prices.
ETF performance
On a weekly basis, holdings in the iShares Silver Trust gained by 1.77 percent to 10,045.85 tonnes till December 21st 2012 from previous week holdings of 9871.29 tonne till December 14th 2012 .
Outlook
Silver prices in the coming week is expected to trade lower owing to worries amongst the market participants over the resolution of the fiscal cliff issue. However, strength in the base metals pack might also act as a supportive factor for the silver prices. Markets might remain subdued due to Christmas and new year vacations. In the domestic markets depreciation in the Rupee might support an upside in the MCX Silver prices..
Weekly Technical Levels
• Spot Silver : Support $ 28.60/27.40 Resistance $31.25/32.75 (CMP: $30.28)
• Sell MCX Silver March between 59800-59900, SL - 61200, Target – 57850