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. 

MCX SilverMini

Factors influencing/Impacting MCX Silver



Economic events such as national industrial growth,global financial crisis,
recession, and inflation affect metal prices.

Commodity-specific events such as the construction of new production facilities or processes, unexpected mine or plant closures, or industry restructuring, all affect metal prices.

Governments set trade policy (implementation or suspension of taxes, penalties, and quotas) that affect  supply by regulating (restricting or encouraging) material flow.

Geopolitical events involving governments or economic paradigms and armed conflict can cause major change.

A faster growth in demand against supply often leads to a drop in stocks with the government and investors.

Silver demand is underpinned by the demand from jewellery and silverware, industrial applications.

In India, the real industrial demand occupies a small share in the total industrial demand of silver. This is in sharp contrast to most developed economies.

In India, silver demand is also determined to a large extent by its price level and volatility.