Silver Plateaus, Under Pressure of U.S. Rate Hike Bets and Declining India Imports
Mar, 03rd 07:56
Silver futures prices were flat in Asian trading hours on Friday after having recorded the largest daily loss since December 15th, 2016. The grey metal was hovering around $17.770 an ounce, depressed by recent hawkish comments from U.S. Federal Reserve policymakers and concerns over declining Indian imports.
According to market sources, silver import by India, one of the world’s top buyers, will probably decline to the lowest level since 2012 this year. Due to the fact that the government cracks down on undisclosed money and farmers struggle for cash while stockpiles remain ample, silver purchases from overseas may continue to contract in 2017 after having plunged 60 percent to about 3,000 tons last year.
On the other hand, Fed officials have been fuelling the expectation for a U.S. March rate increase, boosting the dollar against its peers and making non-yielding assets such as silver less appealing.
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