Spot silver on the market experienced a 1% loss, trading at $27.72 during the MCX closing. Despite a decrease in US yields and a weaker US Dollar, silver prices fell, potentially influenced by the broader weakness in industrial commodities in outside markets. The MCX September silver contract also showed a decline of around 0.55%, currently priced at Rs 81,110, with the overall commodities market experiencing a fall despite softer-than-expected US PPI data for July.
The US Producer Price Index (PPI) for final demand in July exhibited slower growth than forecasted, with service costs showing a decline for the first time in the year. The PPI for goods increased while services costs fell, leading to a mixed data release affecting the markets. The UK's monthly job report for June showcased a drop in unemployment rates but a surge in jobless claims, while the Euro-zone's ZEW survey expectations for August fell short of forecasts.
The US Dollar Index and yields saw a decline following the softer US PPI data, with the ten-year US yields decreasing by 1.29% and the US Dollar Index sliding to its lowest point since August 5. There was an increase in known silver ETF holdings and COMEX silver inventory, reflecting ongoing market activities. The global economic indicators, such as CPI data releases in the US and UK, as well as upcoming GDP growth rates and industrial production data, create anticipation in the financial markets. Silver's performance is closely monitored as it struggles in comparison to gold, with investors keeping an eye on industrial commodities, US and Chinese economic conditions, and upcoming data releases to make informed decisions.