Silver prices edged higher to Rs 70,000 per kg on January 7 tracking gains in gold prices on increased expectations of continuing US stimulus after Democrat won two Georgia Senate seats, improving demand outlook for industrial sector lent support to the prices.
The precious metal had declined 2.2 percent yesterday on the COMEX.
The US dollar index trades higher at 89.65 levels, up 0.17 percent in the afternoon trade.
Silver holdings in iShares ETF declined 11.6 tonnes to 17,495.69 tonnes.
MCX iCOMDEX Bullion Index climbed 127.92 points, or up 0.84 percent, at 15,955.42 at 14:53. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International silver prices are trading with small gains on Thursday morning and early afternoon in Asia, tracking gold prices and a steady US Dollar. Technically, LBMA Silver Spot has rebound above $27.00 levels indicating a sideways momentum in the range of $26.30-$27.90 levels.”
In the futures market, silver for March delivery touched an intraday high of Rs 70,291 and a low of Rs 69,405 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 soared Rs 583, or 0.84 percent to Rs 70,000 per kg at 14:56 hours with a business turnover of 14,403 lots. The same for the May contract jumped Rs 517, or 0.74 percent, to Rs 70,852 per kg with a turnover of 924 lots.
The value of March and May’s contracts traded so far is Rs 1,685.97 crore and Rs 15.28 crore, respectively.
The spot gold/silver ratio currently stands at 70.66 to 1 indicating that silver has outperformed gold.
“Domestic silver prices are trading with modest gains on Thursday morning and early afternoon trade, tracking firm overseas prices. 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 at Rs 69,500-68,700 levels”, said Iyer.
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking Ltd said, “As for today traders can go for BUY in Silver at Rs 69,200 levels, with the stop loss of Rs 68,400 levels and for the target of Rs 70,500 levels.
At 09:31 (GMT), the precious metal surged 0.98 percent quoting at $27.30 an ounce in New York.
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