Silver Trading with Modest Gains During Noon Trade

Silver Tips - Silver futures were trading with modest gains during noon trade in the domestic market on Friday as investors and speculators remained focused on the US Federal Reserve’s upcoming two-day monetary policy meet on December 15-16, where the world’s biggest central bank may hike borrowing costs for the first time since 2006.

While a rate hike is almost certain next week, the Fed’s policy tightening process is expected to be gradual, supporting precious metals, which tend to lose sheen during a period of rising interest rates.

The number of Americans who filed to claim jobless benefits soared to the highest level in five months last week, a sign that the US labour market recovery may be losing steam, bolstering the case for the Fed to tighten rates at a gradual pace.

At the MCX, Silver for March 2016 contract is trading at Rs 34,261 per kg, up by 0.13 per cent, after opening at Rs 34,151, against the previous closing price of Rs 34,215. It touched an intraday high of Rs 34,292