Taking cues from the global and domestic sectors and unceasing gains on the precious yellow metal, silver too rallied in trade on Wednesday. On the MCX, silver has gained heavily and is trading above Rs. 50,000 per kg while the gold also nears Rs. 40,000 mark for 10 gm.
A host of factors are fuelling the rally in the bullion and on the domestic front, the one major driver is the sharp depreciation in levels of rupee which is now trading close to 2019- lows at 72.25 still lower than its opening level.
Herein the investors, as well as bullion traders, are expecting several rate cuts in the light of weak US manufacturing data that shrank for the first time in more than 3 years. This is imminent of the recession already hitting the US sub-continent.
Meanwhile, a host of global factors are also influencing the price rise including the Brexit spat as well as Hong Kong chaos coupled with the US-China trade woes which are not subsiding and instead have since the reinforcement of new levies have only aggravated with no resolution in sight.
In the domestic markets, the continuous gains in the gold price have led to imports shrinking to 3-year low and this could, however, curb further gains in the yellow metal.