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Silver at three-year high, hits Rs 44,000 a kg in Mumbai's spot market

The metal was a laggard for some time but it seems to have bounced back, with short positions in international exchanges getting covered

BS Reporter  |  Mumbai 

silver
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rose to a three-year high on Tuesday, crossing Rs 44,000 per kg in Mumbai’s spot market. The metal was a laggard for some time but it seems to have bounced back, with short positions in international exchanges getting covered. It closed Rs 1,205 higher, at Rs 44,280 per kg, a price last seen in November 2016. Standard gold closed Rs 600 higher at Rs 37,796 per 10 grams.

October gold on the MCX rose to Rs 35,600,, while September hit Rs 44,500 levels. Ajay Kedia, director Kedia Commodities said, “strong safe-haven demand amid political tensions in Hong Kong and a weak Indian Rupee, which dropped to test 71.3975 in futures, supported the bullion rally. Pro-democracy protests in Hong Kong continued, and China asked Western diplomats not to interfere in the territory. Experts fear that the protests could disrupt the and various industries in the region.”

Silver at three-year high, hits Rs 44,000 a kg in Mumbai's spot market

In Argentina's primary elections, the pro-business and incumbent President Mauricio Macri lost by a wide margin to the Opposition's centre-left Alberto Fernandez, causing market panic as the Argentinian currency shed 25 per cent.

According to Rifinitive GFMS note, “The global market fears that another round of an emerging economy crisis could be in the cards, which has also helped gold as a safe haven asset.”

Chinese traders have been betting on the gold-to-ratio, expecting silver will catch up with gold’s or the ratio will fall. Earlier short sellers on Shanghai based exchanges who had sold silver have deposited the white metal in exchange warehouses with an intention to give deliveries. Silver price went up following short covering.

First Published: Tue, August 13 2019. 18:26 IST
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