Silver prices edged lower to Rs 59,705 per kg on October 29 as participants increased their short positions. The precious metal had declined 4.9 percent on the COMEX on October 28 on the back of gains in the Dollar Index amid rising coronavirus cases and US election uncertainty.
The dollar further strengthened against a basket of currencies as fresh COVID-19 infections triggered curbs in Europe, which weighed on the euro. The Dollar Index trades up 0.13 percent at 93.53 levels.
After multiple failed attempts over striking a deal with the Democrats, US President Donald Trump stated that any agreement on the virus relief fund will take place after the November 3 election.
Silver holdings in iShares ETF rose by 72.3 tonne to 17,440.62 tonne.
MCX iCOMDEX Bullion Index was down 18.28 points, or 0.12 percent, at 15,379.71 at 15:28 hours. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Domestic silver futures on the Multi-Commodity Exchange (MCX) tracked international prices and was trading with modest losses in afternoon trade.
In the futures market, silver for December delivery touched an intraday high of Rs 60,335 and a low of Rs 59,400 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 futures for December delivery slipped Rs 433, or 0.72 percent, to Rs 59,705 per kg at 15:31 hours on a business turnover of 15,086 lots. The same for the March delivery dropped Rs 347, or 0.56 percent, to Rs 61,410 per kg on a turnover of 1,613 lots.
The value of December and March’s contracts traded so far is Rs 1,805.23 crore and Rs 42.59 crore, respectively.
The spot gold-to-silver ratio currently stands at 81.03 to 1, indicating that gold has outperformed silver.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “Technically, MCX Silver December has given a breakdown below the rising channel formation and is sustaining below Rs 60,000 levels, indicating a bearish momentum up to Rs 58,500-57,700 levels. Resistance stands at Rs 61,200-60,400 levels."
Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking, said, “As for today, traders can sell silver at Rs 60,400 levels, with a stop loss at Rs 61,100, for a target of Rs 59,000.”
At 10:04 (GMT), the precious metal was down 0.68 percent at $23.20 an ounce in New York.For all commodities related news, click here