MCX Silver Tading 14jun2012

MCX Silver may trade with a downward tendency tracking hints from international exchange. COMEX Silver investments in a narrow variety as tone in gold cost is counterbalanced by weakness in merchandise at huge on back of issues about global financial climate. Combined trend in gold and business materials will keep silver cost uneven.

Apart from euro-zone financial climate, issues keep persist about wellness of US financial climate as well. US retail sales fell 0.2% in May related the fall in previous 30 days. Latest financial information from Chinese suppliers also points towards recession in financial growth.

Weakening perspective for significant financial systems has increased hopes that main financial institutions may take actions to assist their financial systems. Recent inflation information from Euro-zone, US and Chinese suppliers also indicates that cost stress is reducing which may give the main financial institution more flexibility to consider additional actions. However, main financial institutions may not take aggressive actions. 

Last weeks time, Bank of Australia and China’s main financial institution cut amount by 0.25%. However, ECB and BOE kept amount the same while Fed Chairman did not signal any immediate actions. At a fulfill last night, Reserve Bank of New Zealand kept amount the same at 2.5% but acknowledged issues about wellness of the financial climate in wake of Western financial recession. ECB, BOE and US Fed are positioning amount near record low stage and the only way to assist their financial climate is through direct assets infusion. However, these main financial institutions will refrain from taking such actions unless perspective declines significantly. Europe National Bank and Bank of Japan will also fulfill this weeks time. 

Apart from amount cuts, expectations are high that Western commanders will take actions to assist their debt-ridden nations in form of banking union or typical dollar connection. While Western commanders will take steps to assist their financial systems, Malaysia may keep stay against the idea of floating typical euro-bonds.

Overall, gold has converted variety bound as it balances its demand as a safe home asset against being a investment at huge. Concentrate will keep be on US and Euro-zone financial climate. For Euro-zone, concern will keep persist until the outcome of Greece elections later this weeks time. Apart from it, focus will be on regional connection makes and financial information. For US, focus will be on financial information and comments from Fed officials ahead of key FOMC fulfill later this 30 days.

Silver- COMEX Silver investments mixed Thursday after a flat close last night. Silver has also converted rangebound in the midst of mixed hints from gold and business materials. Silver is still positioning firm above $1600/oz stage while business materials stay under stress due to decline perspective for significant financial systems.

While identify gold ended higher last night, silver cost closed on a sluggish note following which the identify gold silver rate rose to 56.15 as against 55.59 a day earlier.