Silver's Shining Comeback Amid Market Fluctuations

Silver prices in the national capital rebounded by Rs 1,000 to Rs 2.46 lakh per kg after a three-day decline, influenced by trends in international markets. While silver gained traction, gold fell slightly. Market analysts suggest a cautious outlook due to a strong US dollar and Federal Reserve policy uncertainties.

In a notable recovery, silver prices in the national capital rose by Rs 1,000 to Rs 2.46 lakh per kg on Wednesday, after experiencing a three-day decline. This rebound aligns with strengthening trends observed in international markets, as reported by the All India Sarafa Association.

Despite the uptick in silver, gold prices saw a minor decrease of Rs 300, settling at Rs 1,56,700 per 10 grams. Gaurav Garg, Research Analyst at Lemonn Markets Desk, highlighted that bargain buying contributed to silver's stabilization after sharp declines. He emphasized that the market sentiment remains cautious due to a strong US dollar and uncertainties surrounding the US Federal Reserve's policy direction.

Internationally, spot silver witnessed a 3% gain to USD 75.60 per ounce, while gold increased by nearly 1% to USD 4,918.64 per ounce. Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, noted investors' hesitancy to make significant market moves ahead of the FOMC minutes release, which could significantly influence US Treasury yields, the dollar, and bullion prices.

(With inputs from agencies.)