Silver prices were steady at Rs 67,600 per kg on April 30 as participants rolled over their long positions as seen by the open interest. The precious metal had fallen 0.1 percent yesterday on COMEX.
The white metal traded in a narrow range after a gap-down start in the afternoon session tracking subdued global cues.
The precious metal has been trading higher than 50, 100 and 200 days’ moving averages but lower than the 5 and 20 days’ moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 49.85 which indicates sideways movement in prices.
Silver has benefitted from improving demand outlook amid optimism about the US and Chinese economy and pickup in manufacturing activity globally.
Silver holdings in iShares ETF were unchanged at 17,650.65 tonnes. The fund NAV is trading at a discount of 0.53 percent.
The US dollar index traded modestly firm at 90.78, up 0.21 percent in the afternoon trade against the major cross.
The spot gold/silver ratio currently stands at 68.18 to 1 indicating that gold has outperformed silver.
MCX Bulldesk marginally increased 10 points or 0.07 percent, at 14,624 at 14:53. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research at Reliance Securities said, “International silver prices were trading weak this Friday early afternoon in Asia, tracking weak gold prices. Technically, LBMA Silver Spot could trade within the range of $25.30-$26.20 levels.”
Technically, MCX Silver July could see a sideways momentum within the narrow range of Rs 66,500-68,000 levels, he said.
In the futures market, silver for May delivery touched an intraday high of Rs 67,614 and a low of Rs 67,348 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 gained Rs 126, or 0.19 percent to Rs 67,600 per kg at 14:58 hours with a business turnover of 561 lots. The same for the July contract slipped Rs 46, or 0.07 percent, to Rs 68,591 per kg with a turnover of 8,540 lots.
The value of May and July’s contracts traded so far is Rs 37.44 crore and Rs 555.58 crore, respectively.
Similarly, the Silver Mini contract for April slides Rs 160, or 0.24 percent at Rs 67,460 on a business turnover of 151 lots.
“MCX Silver future continue to trade sideways to moderately bearish trend below the resistance of 21-SMA of intraday chart placed at Rs 69,030 as US Treasury yields jumped following the release of an upbeat report on the US economy. The key support would be at Rs 67,840 level”, said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.
At 0933 (GMT), the precious metal was slightly down 0.11 percent quoting at $26.02 an ounce in New York.
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