Silver-Escalating US-China trade tension add positive sentiment to the white metal

摘要

CME Silver Futures staged a strong rally in the month of June breaking four months of declining trend moving in sync with gold. During the month of June, CME gold futures surged to a 6-year high on indication of interest rate cut by US Federal Reserve in its next meeting scheduled at the end of July. Soon after this news, the dollar index fell to a 3 month low and US 10 Year Treasury Yield fell below 2%, thereby pushing the precious metal prices higher. The rally in the gold market had its positive impact on silver, which also surged to 3 month high of $15,625 per troy ounce. Similar kind of movement was seen in Indian market wherein MCX silver future surged to a 3-month high of Rs. 38,590 per kg. However, the gains were not sustained in the Indian market and pared most of the gains towards the end of the month.