Silver prices slipped to Rs 68,369 per kg on January 8 after a gap-down open tracking weakness in gold and a firm dollar. The precious metal had gained 0.8 percent yesterday on the COMEX.
Silver prices lost the upward momentum after failing to sustain above $28/oz level but have so far managed to hold near $26.5/oz level.
The US dollar index trades higher at 89.93 levels, up 0.16 percent in the afternoon trade.
Silver holdings in iShares ETF were unchanged at 17,495.69 tonnes.
MCX iCOMDEX Bullion Index dropped 253.43 points, or down 1.59 percent, at 15,693.27 at 15:19. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International and domestic silver prices are trading lower on Friday morning and early afternoon trade tracking weak gold prices. Technically, LBMA Silver Spot is trading on a negative note where it's struggling to break above $27.00 levels indicating a sideways momentum in the range of $26.10-$27.60 levels.”
In the futures market, silver for March delivery touched an intraday high of Rs 69,825 and a low of Rs 67,352 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 54,386 and a high of Rs 79,980.
Silver delivery for March contract edged lower Rs 1,593, or 2.28 percent to Rs 68,369 per kg at 15:22 hours with a business turnover of 14,042 lots. The same for the May contract slipped Rs 1,769, or 2.49 percent, to Rs 69,211 per kg with a turnover of 952 lots.
The value of March and May’s contracts traded so far is Rs 3,080.79 crore and Rs 44.07 crore, respectively.
The spot gold/silver ratio currently stands at 71.34 to 1 indicating that gold has outperformed silver.
“Technically, MCX Silver March could hold support near Rs 69,000 from where a bounced back can be expected up to Rs 70,600-71,200 levels. Support is placed at Rs 69,300-68300 levels”, said Iyer.
At 09:55 (GMT), the precious metal tanked 2.50 percent quoting at $26.58 an ounce in New York.
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