Silver Tips For Today

Silver futures on COMEX are quoting up for a second straight session, starting the New Year on a song as good demand has emerged in precious metals complex. A reprieve on the US fiscal cliff boosted the sentiments for risky assets and bullion metals rallied alongside as a weak turn in US dollar kept the buying on. The commodity quotes at $30.59, up 3.6 cents or 1.20% on the day.

Yesterday, the US House of Representatives has passed legislation to avert big income tax increases on most Americans and prevent large cuts in spending for the Pentagon and other government programs. The measure, brought to the House floor less than 24 hours after its passage in the Senate, passed 257-167, with 85 Republicans joining 172 Democrats in voting to allow income taxes to rise for the first time in two decades, in this case for Americans earning more than $400,000 for individuals, or $450,000 for couples.

COMEX Silver had slumped to a four month low under $30 per ounce in the last month but steady buying has been a perennial feature of the trade thereafter. The markets are also looking out for the Semiconductor Industry Association's latest global sales report. The report presents three-month moving average of global semiconductor sales activity and has turned out to be a useful too to measure silver industrial demand.

MCX Silver futures for March 2012 are trading at Rs 58168, up Rs 250 per kg or 0.43% on the day. The open interest in the counter is up by 2% on the day. Prices had dropped well under Rs 58000 in last session but seem to be charting a decent recovery now.