Silver futures inch towards Rs 48,000 on safe haven demand

Silver prices were supported by improved demand outlook for industrial metal and weakness in the US dollar index

Silver prices edged higher to Rs 47,980 per kg on June 16 as participants increased their long positions. The precious metal was supported by increased geopolitical tension between India and China at the border.

Silver holdings in iShares ETF remained unchanged at 14,991.32 tonne.

In the futures market, silver for July delivery touched an intraday high of Rs 48,185 and a low of Rs 47,980 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 34,076 and a high of Rs 51,235.

Silver futures for July delivery jumped Rs 530, or 1.12 percent, to Rs 47,923 per kg at 14:24 hours on a business turnover of 10,863 lots. The same for the September delivery gained Rs 474, or 0.98 percent, to Rs 48,700 per kg on a turnover of 1,813 lots.

The value of July and September contracts traded so far is Rs 1,334.28 crore and Rs 21.98 crore, respectively.

The spot gold/silver ratio currently stands at 99.27 to 1, which means the amount of silver required to buy one ounce of gold.

Silver is expected to trade positively with support at Rs 47,000 and Rs 47,400 levels, according to Motilal Oswal. The brokerage advised its clients to buy on dips targeting higher resistance at Rs 48,050-48,350 zone.

At 08:58 (GMT), the precious metal was up 1.28 percent quoting at $17.62 an ounce in New York.

The broking firm said spot silver is expected to trade in a range of $17.20-17.65/ounce.

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