Silver Futures Rebound Nearly 2% As Weak Crude Oil Lifts Bullion Demand

New Delhi: Silver futures pared early losses to trade higher, rising by Rs 4,149 to Rs 2.44 lakh per kilogram on Friday, tracking firm global trends as easing concerns over oil supply disruptions supported bullion.

On the Multi Commodity Exchange (MCX), the white metal for September delivery climbed by Rs 4,149, or nearly 2 per cent, to Rs 2,44,800 per kilogram.

The December contract also advanced Rs 3,760, or 1.52 per cent, to Rs 2,51,569 per kg on the commodities bourse.

Traders said silver futures recovered from early weakness as crude oil prices moved lower, easing inflationary concerns and supporting demand for bullion.

However, investors remained cautious ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium, with market participants looking for clarity on the US central bank’s monetary policy path, said Gaurav Garg, Head of Research at Lemonn Markets Desk.

Globally, Comex silver futures for the September contract rose a little over 2 per cent to trade at USD 70.87 per ounce in New York.

Analysts said silver futures rebounded to hover around USD 70 per ounce in the overseas markets.

Garg said crude oil prices declined and were headed for a weekly loss as easing concerns over supply disruptions from West Asia supported bullion rates.

On the US macroeconomic front, Warsh’s commentary remains the key near-term catalyst for precious metals.

“A hawkish stance, particularly on persistent inflation, could push US Treasury bond yields and the dollar higher, creating further pressure on assets such as gold and silver,” he added.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)