Silver prices declined to Rs 67,096 per kg on March 10 as participants increased their short positions as seen by the open interest. The precious metal had risen 3.6 percent on March 9 on the COMEX.
The white metal traded in the negative territory after a gap-down start in the afternoon session, tracking weakness in gold and a stronger dollar.
The semi-precious metal has been trading higher than 5, 100 and 200 days’ moving averages but lower than 50 and 20 days’ moving averages on the daily chart. The Relative Strength Index (RSI) is at 47.79 which indicates bearish momentum in prices.
Silver has been weighed down by weakness in the Chinese equity market and continued ETF outflows.
Silver holdings in iShares ETF remained unchanged at 18,455.77 tonnes.
The US dollar index traded marginally higher at 92.01, up 0.06 percent in the afternoon trade against the major cross.
MCX Bulldesk eased 40 points or 0.28 percent, at 14,254 at 15:38 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
"We are approaching the 50-day EMA, so that has a part of a play, but if we break above there then it is very likely that we will go looking towards the Rs 69,000 level. On the downside, support is at Rs 64,800-Rs 63,300 whereas resistance for the energy is at Rs 69,500 levels," said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.
In the futures market, silver for May delivery touched an intraday high of Rs 67,244 and a low of Rs 66,522 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 59,826 and a high of Rs 75,501.
Silver delivery for the May contract slipped Rs 389, or 0.57 percent to Rs 67,096 per kg at 15:45 hours with a business turnover of 12,166 lots. The same for the July contract edged lower by Rs 355, or 0.52 percent, to Rs 68,111 per kg with a turnover of 64 lots.
The value of May and July’s contracts traded so far is Rs 1,131.01 crore and Rs 5.51 crore, respectively.
Similarly, the Silver Mini contract for April slumped Rs 412, or 0.61 percent at Rs 67,115 on a business turnover of 15,093 lots.
The spot gold/silver ratio currently stands at 66.39 to 1, indicating that gold has outperformed silver.
Silver may witness choppy trade as risk sentiment affects gold and industrial metals differently; however, a sharp rise is unlikely unless we see substantial recovery in gold price or pick up in investor buying, said Kotak Securities.
At 10:20 (GMT), the precious metal was down 1.08 percent to quote at $25.90 an ounce in New York.
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