Silver prices hover near Rs 70,000 per kg on firm gold, industrial metals
Silver prices edged higher on July 15 tracking firm industrial metals and gold as the dollar retreat. The precious metal had soared 0.50 percent yesterday on the COMEX.
The white metal traded in the positive territory after a gap-up start in the afternoon session.
The semi-precious metal has been trading higher than 5, 20, 100 and 200 days’ simple moving averages but lower than the 50-day moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 52.59, which indicates sideways movement in the price.
Silver surged higher along with gold after US Fed chief Jerome Powell reiterated that the central bank would continue its accommodative monetary policy despite a spike in inflation reading.
Silver holdings in iShares ETF were unchanged for the third day at 17,267.10 tonnes. The fund NAV is trading at a premium of 0.26 percent.
The US dollar index marginally dropped to 92.34, down 0.07 percent against the major cross.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “In other precious metals, silver prices too are trading with small gains on Thursday afternoon trade in Asia, tracking gold. Technically, LBMA Silver above the $26.40 level will continue its Bullish momentum and further could see $26.65-$27.20 levels. Support is at $26.10-$25.70 levels.”
“Domestic silver prices are trading with small gains in early afternoon trade, tracking overseas prices. Technically, MCX Silver September above Rs 69,500 levels could see a Bullish momentum up to Rs 70,900-71,600 levels. Support is at Rs 69,200-68,500 levels,” Iyer added.
The spot gold/silver ratio currently stands at 69.51 to 1 indicating that silver has outperformed gold.
MCX Bulldesk increased 0.34 percent, to 14,892 at 15:23. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, silver for September delivery touched an intraday high of Rs 69,889 and a low of Rs 69,466 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 67,700 and a high of Rs 75,215.
Silver delivery for the September contract rose Rs 409, or 0.59 percent to Rs 69,821 per kg at 15:24 hours with a business turnover of 10,092 lots. The same for the December contract climbed Rs 374, or 0.53 percent, to Rs 71,026 per kg with a turnover of 537 lots.
The value of September and December’s contracts traded so far is Rs 614.41 crore and Rs 5.74 crore, respectively.
Similarly, the Silver Mini contract for August gained Rs 369, or 0.53 percent at Rs 69,926 on a business turnover of 12,540 lots.
The trend in the US dollar and bond yields may continue to impact gold and silver and the focus for the day will be on economic data from the US and China, said Kotak Securities.
MoneyControl
