Silver futures jump nearly 1% to ₹2.38 lakh/kg as US Treasury move boosts precious metals
On the Multi Commodity Exchange, the white metal for the September delivery climbed by ₹2,163, or nearly 1%, to ₹2,38,950 per 10 grams in a business turnover of 10,383 lots
Silver futures surged nearly 1% to ₹2.38 lakh per kilogram on Thursday, following a surprise US Treasury liquidity-support announcement that lowered bond yields and the US dollar. On the Multi Commodity Exchange, the white metal for September delivery increased by ₹2,163, or nearly 1%, to ₹2,38,950 per 10 grams in a trading volume of 10,383 lots.
Analysts attributed the rise in silver's appeal to softer US Treasury yields and a weaker dollar. In international markets, Comex silver futures for September delivery were up 1.58% at $66.86 per ounce in New York. Silver reached its highest levels in over two and a half months after the unexpected liquidity support announcement from the US Treasury, which reduced bond yields and the dollar, according to Renisha Chainani, Chief Research Officer at Augmont.
The US government announced it would double the size of its liquidity-support buyback operations, covering securities with maturities from 10 to 30 years. Fed minutes released on Wednesday indicated growing concerns about inflation, with several policymakers ready to raise interest rates and many suggesting borrowing costs would need to increase if inflation does not fall toward the central bank's 2% target.
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