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Silver breaks below 100-DMA as prices fall under Rs 65,000/kg; may see further dip

Technically, COMEX Silver December resistances are at $24.520 and $24.953. Supports are at $23.790 and $23.493, said Iyer.

Mumbai / October 27, 2021 / 04:16 PM IST
Silver

Silver

Silver prices edged lower for the second day on October 27 as the dollar rebounded on better than expected US economic data, a weaker trend in gold and industrial metals. The precious metal has tumbled 2.05 percent yesterday on the COMEX.

Silver traded in the negative territory in the afternoon session after a flat to gap-up start, tracking the subdued global trend. It has come under bear grip as the price fell below the crucial 100-Daily Moving Average (DMA).

The precious metal has been trading higher than the 20 and 50 days' moving averages but lower than the 5, 100 and 200 days moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) was at 58.80, suggesting a buy in the price.

“Silver prices fell after breaking through trend line resistance, which is now support at $24. Further support can be found near the 10-day moving average at $23.41. Near the September highs of $24.82 resistance is seen. The 10-day moving average is about to cross above the 50-day moving average, indicating the start of a short-term uptrend,” said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.

Silver may witness a decline in prices to continue in the evening session and prices may test $23.65-23.60 during the second half of the day, he said.

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“International silver prices have started weaker this Wednesday morning and early afternoon in Asian trade tracking the strength of the US Dollar. Technically, COMEX Silver December resistances are at $24.520 and $24.953. Supports are at $23.790 and $23.493," said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Technically, MCX Silver December resistances are at Rs 65,945 and Rs 66,902. Supports are at Rs 64,322 and Rs 63,656, Iyer stated.

Silver holdings in iShares ETF remained unchanged at 16,936.7 tonnes. The fund NAV is trading at a discount of 0.65 percent.

The US dollar index was slightly up 0.02 percent at 93.95 against the major currencies in the afternoon session.

The spot gold-silver ratio was at 74.63 to 1, indicating that gold had outperformed silver.

MCX Bulldesk fell by 30 points, or 0.21 percent, to 14,350 at 3.47 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

On MCX, December silver delivery touched an intraday high of Rs 65,058 and a low of Rs 64,578 a kg. In the current series, the metal has touched a low of Rs 58,150 and a high of Rs 74,127.

Silver delivery for the December contract slipped Rs 220, or 0.31 percent, to Rs 64,787 per kg at 3.48 pm with a business turnover of 10,312 lots. The same for March dropped Rs 187, or 0.28 percent, to Rs 65,494 with a turnover of 2,965 lots.

The value of December and March’s contracts traded, so far, is Rs 590.26 crore and Rs 15.72 crore, respectively.

The Silver Mini contract for November slides Rs 224, or 0.34 percent, to Rs 64,937 on a business turnover of 24,501 lots.

At 10.21 am GMT, silver was 0.29 percent lower, quoting at $24.01 an ounce in New York.

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Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sandeep Sinha

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