Silver prices edged higher to Rs 65,357 a kg on January 11 as participants trimmed their positions as seen by the open interest. The precious metal declined 5.7 percent the previous week on the MCX.
The white metal extended gain in the afternoon session tracking gains in gold after a gap-down open.
The US dollar index was trading higher at 90.33 levels, up 0.26 percent in the afternoon trade.
Silver holdings in iShares ETF were unchanged at 17,495.69 tonnes. The fund is trading at a discount of 5.05 percent from its market price.
MCX iCOMDEX Bullion Index jumped 138.82 points, or up 0.92 percent, at 15,306.87 at 1458 hours. The index tracks the real-time performance of MCX gold and silver futures.
Sriram Iyer, Senior Research Analyst at Reliance Securities, said, “International silver prices are trading marginally weak on Monday morning and early afternoon trade in Asia. LBMA Silver Spot found support close to $24.00 levels and bounced back and could trade in a range of $24.00-$26.10 levels.”
In the futures market, silver for March delivery touched an intraday high of Rs 65,520 and a low of Rs 63,603 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 gained Rs 1,126, or 1.75 percent, to Rs 65,357 a kg at 1500 hours with a business turnover of 12,634 lots. The same for the May contract climbed Rs 1,048, or 1.61 percent, to Rs 66,250 per kg with a turnover of 1,045 lots.
The value of March and May’s contracts traded so far is Rs 1,840.03 crore and Rs 20.20 crore, respectively.
The spot gold/silver ratio currently stands at 73.51 to 1 indicating that gold has outperformed silver.
“Domestic silver prices were up on Monday morning and early afternoon trade and bucked the overseas trend. MCX silver March was trading near the support zone near Rs 63,600 levels from where it could bounce back up to Rs 64,700-65,900 levels," said Iyer.
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking Ltd, said, “As for today traders can go for sell in silver at Rs 64,300 levels, with the stop loss of Rs 65,100 levels and for the target of Rs 62,500 levels.”
At 0933 GMT, the precious metal was up 2.39 percent quoting at $25.22 an ounce in New York.
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