Silver prices declined to Rs 61,860 per kg on October 28 as participants increased their short positions as seen by the open interest. The precious metal had gained 0.6 percent a day earlier on COMEX.
Silver prices have been stuck in a broad range of $24-25.3/troy ounce as market participants remain on sidelines ahead of US elections.
Silver prices traded lower tracking weakness in gold prices, firm dollar and impasse over US stimulus. The US dollar index traded higher at 93.37 levels up 0.48 percent.
Silver holdings in iShares ETF fell by 86.8 tonnes to 17,368.29 tonnes, lowest since October 1.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, International silver prices were trading in the red this Wednesday afternoon in Asian trade amid a firm US Dollar.
Technically, LBMA Silver Spot is trading on a flat note near $24.32 levels near its 21-DMA. However, below the level $23.50-$23.00 can be expected. Resistance holds at $25.07-$25.27 levels.
Domestic silver futures on MCX tracked international prices and was trading with modest losses in this Wednesday afternoon trade.
MCX iCOMDEX Bullion Index was down 48.54 points, or 0.31 percent, at 15,583.12 at 15:41. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, silver for December delivery touched an intraday high of Rs 62,500 and a low of Rs 61,780 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 49,415 and a high of Rs 79,723.
Silver delivery for December contract slipped Rs 421, or 0.68 percent to Rs 61,860 per kg at 15:42 hours with a business turnover of 15,361 lots. The same for the March contract dropped Rs 357, or 0.56 percent, to Rs 63,550 per kg with a turnover of 1,389 lots.
The value of December and March’s contracts traded so far is Rs 1,554.67 crore and Rs 35.80 crore, respectively.
The spot gold/silver ratio currently stands at 78.32 to 1 indicating that gold has outperformed silver.
Technically, MCX Silver December is holding near 21-DMA at Rs 61,770 levels above which could see upside up to Rs 62,500-63,060 levels. Support holds at Rs 61,200-60,700 levels.
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking Ltd said, “As for today traders can go for buy in Silver at Rs 61,700 levels, with the stop loss of 61,200 levels and for the target of 62,700 levels."
At 10:15 (GMT), the precious metal was down 1 percent quoting at $24.32 an ounce in New York.For all commodities related news, click here