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Silver futures flat at Rs 68,525/kg on weaker dollar; experts raise bullish positions

Technically, LBMA Silver Spot trading above $25.75 which could push prices to $26.30-$27.50 levels.

Mumbai / April 26, 2021 / 03:25 PM IST


Silver prices were steady at Rs 68,525 per kg on April 26 as participants increased their long positions as seen by the open interest. The precious metal ended last week flat on the domestic bourse but traded bullish in April month due to easing bond yields and the US dollar.

The white metal pared losses after a flat to gap-down start in the afternoon session tracking gains in gold and a weaker dollar.

The commodity has been trading higher than 20, 50, 100 and 200 days’ moving averages but lower than the 5-day moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 55.63 which indicates positive movement in prices.

Hedge funds and money managers raised their bullish positions in COMEX Silver contracts by 4,001 to 28,885 in the week to April 13, the US CFTC data showed.

Sunand Subramaniam, Senior Research Associate, Choice Broking said, “For the coming month, we are estimating MCX Silver price to trade mixed as ETF investments have shown improvement in the global markets due to weak US Dollar index. Correspondingly, silver prices also find support from the lower levels as the industrial demand is expected to find further recoveries and global markets are expected to resume business activities.”

Silver holdings in iShares ETF rose 8.65 tonnes at 17,724.24 tonnes. The fund NAV is trading at a discount of 0.47 percent.

The US dollar index traded marginally lower at 90.73, down 0.11 percent in the afternoon trade against the major cross.

The spot gold/silver ratio currently stands at 68.24 to 1 indicating that silver has outperformed gold.

MCX Bulldesk marginally decreased 9 points or 0.06 percent, at 14,850 at 15:04. 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 are trading flat this early Monday afternoon trade in Asia. Technically, LBMA Silver Spot trading above $25.75 which could push prices to $26.30-$27.50 levels. Support is at $25.60-$24.70 levels.”

Technically, MCX Silver bounced back from Rs 68,000 levels and now could move up to Rs 69,500-70,300 levels. Support is at 68000-67500 levels, he said.

In the futures market, silver for May delivery touched an intraday high of Rs 69,437 and a low of Rs 68,055 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 declined Rs 149, or 0.22 percent to Rs 68,525 per kg at 15:07 hours with a business turnover of 8,328 lots. The same for the July contract slipped Rs 146, or 0.21 percent, to Rs 69,688 per kg with a turnover of 2,723 lots.

The value of May and July’s contracts traded so far is Rs 784.91 crore and Rs 234.39 crore, respectively.

Similarly, the Silver Mini contract for April slides Rs 141, or 0.21 percent at Rs 68,575 on a business turnover of 4,275 lots.

“The price has sustained below the resistance of 15-SMA on an hourly chart placed at Rs 68,875. The key support would be Rs 68,341 – low of the previous session”, said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.

At 0943 (GMT), the precious metal was up 0.30 percent quoting at $26.15 an ounce in New York.

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Sandeep Sinha