Friday, 27 September 2013

MCX Silver futures end lower as strong US data raised Fed QE taper fears

MCX Silver futures ended lower in the domestic market on Yesterday as investors and speculators exited positions in the precious metal tracking weak cues from the overseas market as strong US data signaled a pickup in the world’s biggest economy, boosting the case for the US Federal Reserve to start tapering its record easing program, dimming the appeal of the white metal, which is a hedge against the inflationary risk of monetary stimulus. The number of Americans who filed for jobless claims fell by 5,000 to 305,000 last week, signaling an improving labour market recovery. 

The US economy gained steam last quarter as gross domestic product expanded at an annualized pace of 2.5 per cent from Q1, when it grew 1.1 per cent. At the MCX, Silver futures, for December 2013 contract closed at Rs. 48,639 per 1 kg, down by 1.08 per cent, after opening at Rs. 49,000, against the previous closing price of Rs. 49,171.

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