Silver prices climbed to Rs 60,700 per kg on September 29 as participants increased their long positions, seen by the open interest. The precious metal edged higher tracking weakness in the US dollar and recovery in gold and industrial metals.
Silver prices witnessed a rebound after a sharp 14 percent fall last week and managed to hold near $22/oz level amid improvement in the Chinese economy.
Silver holdings in iShares ETF rose by 117.2 tonnes to 17,131.53 tonnes.
Sriram Iyer, senior research analyst at Reliance Securities said, "On the charts, LBMA Silver Spot has given a Bullish Reversal where prices had bounced back from $22 levels indicating further upside movement up to $23.80-$26.00 levels."
The MCX Silver December has given a bullish reversal where it is sustaining above 58,000 levels indicating further upside movement up to 61,900-63,150 levels. Support remains at 59800-58000 levels, he said.
Markets will have a keen eye on the first presidential debate between US President Donald Trump and Democratic rival Joe Biden ahead of the November 3 election.
Meanwhile, Federal Open Market Committee member Loretta Mester said on September 28 that patchy economic recovery from the impact of the coronavirus pandemic is likely to continue for some time and will need another aid package to support the economy.
MCX iCOMDEX Bullion Index rose 40.92 points, or 0.27 percent, at 15,369.44 at 14:28. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, silver for December delivery touched an intraday high of Rs 60,870 and a low of Rs 60,060 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 49,415 and a high of Rs 79,723.
Silver delivery for December contract gained Rs 304, or 0.50 percent to Rs 60,700 per kg at 14:30 hours with a business turnover of 16,414 lots. The same for the March contract jumped Rs 310, or 0.50 percent, to Rs 62,426 per kg with a turnover of 696 lots.
The value of December and March’s contracts traded so far is Rs 1,234.02 crore and Rs 4.85 crore, respectively.
The spot gold/silver ratio rose to 79.52 to 1, suggesting gold is outperforming silver.
Anuj Gupta, deputy vice president - commodities and currencies research at Angel Broking said, “As for today traders can also go for buy in Silver at Rs 60,500 levels, with the stop loss of Rs 59,500 levels and for the target of Rs 62,000 levels."
At 09:04 (GMT), the precious metal was up 0.94 percent quoting at $23.85 an ounce in New York.For all commodities related news, click here