Silver futures were trading higher during evening trade in the domestic market on Thursday as investors and speculators extended their positions in the precious metal as US dollar retreated from a 14-year peak touched earlier this week after the US Fed minutes suggested a less hawkish stance from policymaker. The precious metal is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets, while boosting the dollar, in which it is priced.
Moreover, traders keenly eyed the (US) non-farm payrolls data due this Friday. If there is lower-than-expected data, then it will be a good chance for gold to have a strong rebound.
At the MCX, silver futures for March 2017 contract is trading at Rs 40,484 per kg, up by 0.54 per cent, after opening at Rs 40,460, against a previous close of Rs 40,267. It touched the intra-day high of Rs 40,678 (at 16:02 hours).
