New Delhi, Sept. 23 -- The Federal Reserve's rate hike on September 16 hit London's silver market with a cushion that New York traders didn't have. While XAG/USD fell 3.7% from its pre-hike level to $63.50 per ounce on hike day, XAG/GBP moved a more muted 2.3% lower to £50.08 - because the same dollar strength that depressed silver also pushed down the pound. Five sessions later, XAG/GBP is trading at £51.95 on September 21, a recovery of 3.7% from the hike-day floor, and Thursday's Trump-Xi summit in Washington is the next event that will test the exchange rate arithmetic for UK buyers.

with GBP/USD firming to approximately 1.275 on Monday, sterling buyers received a partial offset of the dollar-denominated recovery. This cros...