Silver futures tumble on Fed stimulus taper bets
Silver futures slumped in the domestic market on Wednesday as investors and speculators exited positions in the precious metal amid concerns that the US Federal Reserve may continue to taper QE in the coming months, dimming the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus. Fed Chairman Janet Yellen said that given the considerable underlying strength in the economy, QE tapering in recent months has been appropriate. Silver futures for May 2014 contract, at MCX, closed at Rs. 41,928 per 10 grams, down by 1.51 per cent after opening at Rs. 42,596, against the previous closing price of Rs 42,571. It touched an intra-day low of Rs 41,870.
Silver futures slumped in the domestic market on Wednesday as investors and speculators exited positions in the precious metal amid concerns that the US Federal Reserve may continue to taper QE in the coming months, dimming the appeal of the bullion, a hedge against the inflationary risk of monetary stimulus. Fed Chairman Janet Yellen said that given the considerable underlying strength in the economy, QE tapering in recent months has been appropriate. Silver futures for May 2014 contract, at MCX, closed at Rs. 41,928 per 10 grams, down by 1.51 per cent after opening at Rs. 42,596, against the previous closing price of Rs 42,571. It touched an intra-day low of Rs 41,870.
