recent market news
Silver Reports Marginal Gains
In today's commodities update, silver posted a marginal gain of 0.20% to come over 68000 INR. There are two conflicting factors that are driving silver prices against each other. The Federal Reserve's rate hike forecasts that silver prices should increase in the short run, due to silver's reputation as a strong inflation hedge, even stronger than gold some argue.
However, the dollar has also gained in strength versus other global currencies, leading speculators to flock towards the currency, despite the volatility, over the stable precious metal.
Also, the relationship between gold and silver is largely direct. An increase in gold prices is usually met with an increase in silver prices as well. However, recently silver has leapfrogged gold in value. A large component of electric vehicle parts and batteries requires the use of silver, which has propped up demand significantly in the last few years.