Why silver outshined Nifty 50, gold in November 2023 — explained

livemint.com:

Nifty 50 reclaiming the psychological 20,000 levels, silver price rally outshined 50-stock index in the month of November. In November till date, silver price has rallied to the tune of 6 per cent in domestic market whereas in international market, the precious white metal has risen more than 9 per cent, a return which is much higher than public providend fund (PPF) or bank fixed deposit (FD) returns.

Compared to silver price rally, Nifty 50 index manged to register near 5.30 per cent MTD (month-to-date) rally 4.96 per cent while gold price apprecited to the tune of around 3 per cent only. According to commodity market experts, depreciation in US dollar rate and 10-year US bond yield descending close to 4 per cent from 16-year higher levels of 5 per cent helped gold and silver price rally in recent sessions.

However, due to positive sentiments in Chinese consumption led to more industrial demand for thw precious white metal, which helped silver in outshining the key bench mark index and gold in November 2023. Speaking on silver price rally, market expert Sugandha Sachdeva said, "Silver has been shining bright, and has registered gains of around 5.87% this month and around 9.355 in the international markets, while outperforming the benchmark index Nifty 50, which has gained by close to 5.33%.

The decline in US treasury yields and a sharp corrective move seen in the dollar index have been the key catalysts that have helped the white metal gain strong ground. Finding a wall of supply at the 107.50 mark, the dollar index has drifted lower by around 3.60% for the month.