Silver Prices Depreciates A Month Low To 40,000 INR Including Gold

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Silver saw its month low depreciation below Rs. 40,000 per kg in bullion here on Friday, May 20th, 2016. The price rate surged to Rs. 39,950 per kg in Delhi market after 30 days long gap. Gold also saw a price reduction after a long time equally. It was priced at 29,750 per 10 grammes. The sole reason for such reduction of both the metals is due to impending rate hike from mid-May. Stock and commodity market are the factors for a rate hike in the US Federal Reserve applicable from June this year. Currently, INR has opened to 67.43 against USD.

According to Edward Meir, Independent Commodity Consultant at INTL FC Stone, Just as the prospect of extended low rates and a weaker dollar provided commodities with considerable tailwinds earlier in the year, the reverse could be at work now, as rising rates and a stronger dollar pressures prices lower. Gold will likely be a front-casualty in such a retreat.

On another side, BP Equities Pvt. Ltd. revealed that the June hike might rise to 12% on Tuesday. Likewise, the first world country witnessed a fast pacing inflation along with growing upwards as of new-home construction might help US Federal to raise interest rate hikes. Making Gold as the first hit metal in the international market was expected to be at all time low in the time span of three months on Thursday.


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Being weighed as of pureness forms yellow metal (Gold) as well as typical metal (Silver) it closed to 99.9% and 99.5% costing to Rs. 29,750 and Rs. 29,600 each. Silver ready dropped by Rs. 500 and beforehand delivery sustained to Rs. 300. The coins made of Silver swirled by Rs. 1,000 pricing at 67,000 INR for buying purposes and if trying to sell then its has come to 68,000 INR per 100 pieces.

Traders stated that apart from bearable sentiments, a month low of Gold and Silver is a serious concern. Tracking a decline in trend overseas after a silent demand by jewellers might be primary reasons for deprivation at the domestic spot market. As for US Federal Reserve, it might increase interest rates as early as next month. The following was revealed in April policy meeting denting the bullion’s appeal.

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