Silver futures were trading tad lower during noon trade in the domestic market on Tuesday as traders eyed the US Services PMI data which may offer a greater insight into the economy’s health after Friday’s below-par jobs data.
The US services index is likely to rise to 55.7 in August from 55.5 in July; the ISM may show later today.
Silver jumped in the overseas market amid reduced bets of a Fed September rate hike and a weaker dollar which bolstered the lure for the precious metal as an alternative asset. Weaker greenback makes silver cheaper for those holding other currencies, thus buoying demand.
Silver, a non-interest bearing asset, tends to benefit from lower interest rates. Employers in the US added 151,000 workers in August, compared to an upwardly revised 275,000 gain in July, against an expected 180,000 increase, making the case for the Fed to delay policy tightening for a few more months.
At the MCX, Silver futures for September 2016 contract closed at Rs 46,426, per 1 kg, down by 0.08 per cent after opening at Rs 46,465, against the previous closing price of Rs 46,463. It touched the intra-day low of Rs 46,341. (At 14:47 PM).
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