Silver prices slumped to Rs 65,793 per kg on January 15 as participants increased their short positions as seen by the open interest. The precious metal had gained 0.9 percent yesterday on the COMEX.
The white metal traded in the red after a gap up open tracking directionless tracking firm dollar.
The US dollar index trades marginally higher at 90.35 levels, up 0.15 percent in the afternoon trade.
Silver holdings in iShares ETF decreased 54.9 tonnes to 17,248.57 tonnes on weaker investor interest.
MCX iCOMDEX Bullion Index eased 51.25 points, or down 0.33 percent, at 15,314.13 at 15:08. 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 with modest losses this Friday morning and early afternoon trade. Technically, LBMA Silver Spot is holding a resistance near $26.04 levels above which could see a bullish breakout up to $27.00-$27.38 levels. Support is at $24.90-$24.00 levels.”
In the futures market, silver for March delivery touched an intraday high of Rs 66,266 and a low of Rs 65,300 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 the March contract dropped Rs 890, or 1.33 percent to Rs 65,793 per kg at 15:10 hours with a business turnover of 12,074 lots. The same for the May contract slipped Rs 511, or 0.76 percent, to Rs 66,760 per kg with a turnover of 1,145 lots.
The value of March and May’s contracts traded so far is Rs 1,555.63 crore and Rs 5.81 crore, respectively.
The spot gold/silver ratio currently stands at 72.94 to 1 indicating that silver has outperformed gold.
“Technically, MCX Silver March could bounce back from Rs 64,900 levels where above Rs 66,400 levels indicating a positive momentum up to Rs 67,350-68,040 levels. Support is at Rs 65,100-64,600 levels, said Iyer.
At 09:49 (GMT), the precious metal was down 1.03 percent quoting at $25.53 an ounce in New York.
For all commodities-related news, click hereDisclaimer: 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.