Silver prices rose 0,67 percent to Rs 69,473 per kg on February 22 on firm demand. The precious metal had declined 0.15 percent last week on the MCX.
The white metal traded in the positive territory after a gap up open in the afternoon session tracking firmness in base metals and gains in the gold price.
Hedge funds and money managers raised their bullish position in COMEX Silver by 1,299 contracts to 40,990 in the week to February 16, the US CTFC data showed.
Silver holdings in iShares ETF fell by 72.22 tonnes to 19,243.26 tonnes on ETF outflow.
The US dollar index trades lower at 90.40 levels, up 0.04 percent in the afternoon trade.
MCX iCOMDEX Bullion Index rose 123.02 points, or up 0.83 percent, at 14,893.69 at 15:36. 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 higher this Monday morning and early afternoon trade in Asia. Technically, LBMA Silver Spot is trading on a positive note after a bounce back from $26.00 levels indicating further upside up to $27.90-$28.50 levels. Support is at $26.97-$26.30 levels.”
“Domestic silver prices are also trading higher this Monday morning and early afternoon trade, tracking overseas prices. MCX Silver March is trading above 21 as well as 50-Daily Moving Average which is placed at Rs 68,770 levels indicating an upside momentum up to 69,900-70,600 levels whereas support is at Rs 68,750-67,600 levels”, Iyer added.
In the futures market, silver for March delivery touched an intraday high of Rs 69,688 and a low of Rs 68,981 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 jumped Rs 461, or 0.67 percent to Rs 69,473 per kg at 15:40 hours with a business turnover of 11,779 lots. The same for the May contract rose Rs 426, or 0.61 percent, to Rs 70,580 per kg with a turnover of 3,015 lots.
The value of March and May’s contracts traded so far is Rs 1,191.80 crore and Rs 132.23 crore, respectively.
The spot gold/silver ratio currently stands at 65.36 to 1 indicating that silver has outperformed gold.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Silver is trading above Rs 69,000 levels, the international hedge fund did a lot of buying in the international market in last week to take a grip over bears in the silver. The market pulls back is likely to offer plenty of buying opportunities in the domestic market. Silver has downside support at Rs 68,200-67,600 while resistance is at Rs 70,700-71,400 levels.”
At 10:20 (GMT), the precious metal was up 1.09 percent quoting at $27.55 an ounce in New York.
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