Silver stayed supported at the start of the year as gains in Gold kept sentiments firm. However, a slightly weak undertone in Copper on uncertainty ahead of Donald Trump's inauguration as US president and concerns over Britain's impending exit from the European Union weighed on the red metal. This in tune pulled COMEX Gold from its six week highs though the metal stayed supported above $17 per ounce levels. Moderating mining output remains a worry for the metal and prices are likely to stay supported on this count. MCX Silver futures remain supported above Rs 40000 per kg levels.
Meanwhile, the prospects of global economic growth are better this year, the developing countries would grow at a slower-than-expected pace due to the withdrawal of high-denomination banknotes by India and spillover effects of US politics on Mexico, according to Christine Lagarde, the Managing Director of IMF. This is for the first time in recent years that the IMF has not revised the Gross Domestic Product growth rate downward, which is expected to remain at 3.4% in 2017, said Lagarde. This points to a steady recovery in world industrial activity and could support base metals, in turn boosting Silver prices too.
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