Investing.com - Financial Markets Worldwide

Silver May Remain Weak, Take Short Positions

ByCommodityOnline
Published 02/17/2012, 01:28 AM
Updated 05/14/2017, 06:45 AM
GC
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SI
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IMOEX
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Silver futures prices at COMEX although settled with slight gains owing to the optimism of a successful Greek deal but yet again a failure of kicking the bell led the metal to pare some gains .

At MCX however, the rupee appreciation did not led the metal to grow. It settled with slight losses at MCX.

The US US equities ended lower after minutes of the FOMC shed water on hopes of more easing as only a few members of the policy-setting panel favored another round of quantitative easing. European equities as well slid after the Greece meet postponed

The stronger dollar index gained as the TIC flows increased hugely indicating dollar demand and the Euro lost the ground by more than half a percent on a losing Greek hope

The I-share silver holding increased to 9700 tons from 9664.26 tons as on Feb.10

OUTLOOK:
 
Silver futures prices at the Globex also retreated at the early trade as the Asians are facing the news of delayed Greek deal. This has raised the concern for Greek default by March 20 when they are due to pay the redeemed bonds of amount 14.3billion Euros.

As discussed in gold’s outlook, the Euro is likely to remain weak for the day owing to the postponed Greek deal and the US releases are also likely to be positive for the US economy.

Besides, minutes of the FOMC meet created doubt over the easing for any time soon. Hence, silver might remain weak for the day and therefore we recommend remaining short for the metal.

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