Silver on MCX settled up 1.16% at 43353 as the dollar softened and uncertainties surrounding U.S. President Donald Trump's policies and elections in Europe fuelled safe-haven demand. Silver rose 0.8 percent to $18.30 per ounce, having touched its highest in 3-1/2-months at $18.40. Silver has gained about 1.8 percent this week in what could be its ninth straight weekly gain.
Haven demand rose amid growing concerns about geopolitics and the Federal Reserve’s lack of commitment to lift benchmark interest rates also helped to support higher prices in the precious metals. The firm gains for the metals came as the dollar softened on indications U.S. President Donald Trump’s tax and other pro-business policy plans would be implemented at a slower-than-expected pace.
Growing concerns about coming elections in the Netherlands, France, Germany and Italy, where populist parties threaten to upend the status quo in the European Union, also are fostering anxiety among investors. The Commerce Department said new home sales rose 3.7 percent to a seasonally-adjusted 555,000 units but missed estimates of a 6.3% rise in January. U.S. consumer sentiment remained upbeat, after The University of Michigan's Consumer Sentiment Index hit 96.3 in February, compared to expectations of 96.3.
The rally in prices comes as Fed minutes highlighted a reluctance among some Fed members’ to support a raise in interest rates while uncertainty over the impact of Trump’s economic policies on economic growth remained. Elsewhere, Treasury Secretary Steven Mnuchin said, that President Trump’s pro-growth politics, which are viewed as inflationary and a boon for dollar, will have a limited impact in 2017. Technically now Silver is getting support at 43151 and below same could see a test of 42949 level, And resistance is now likely to be seen at 43490, a move above could see prices testing 43627.