Silver futures slip marginally to Rs 63,360 per kg

Silver

Silver futures slipped marginally to Rs 63,360 per kg on December 11 as participants increased their short positions as seen by the open interest. The precious metal had gained 0.4 percent yesterday on the COMEX.

The white metal price struggled for direction after sharp sell-off earlier this week amid outflow in silver ETF.

However, the general improvement in the industrial sector across major economies and continuing recovery in China has improved outlook for silver’s industrial demand.

The US dollar index trades firm at 90.90 levels, up 0.08 percent in the afternoon trade.

Silver holdings in iShares ETF fell by 57.8 tonnes to 17,087.46 tonnes.

MCX iCOMDEX Bullion Index fell 0.87 points, or down 0.01 percent, at 15,153.92 at 15:08. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

Kshtij Purohit, Product Manager Currency & Commodities, CapitalVia Global Research Limited said, “MCX Silver March yesterday gave confirmation of Shooting Star Candlestick pattern formation and corrected sharply from Rs 64,800 levels and now price was close below Rs 64,000 which is 100 days SMA. The support for the metal is at Rs 62,800-62,200 levels and resistance is at Rs 63,750-64,300 levels.

In the futures market, silver for March delivery touched an intraday high of Rs 63,581 and a low of Rs 63,005 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 slipped Rs 170, or 0.27 percent to Rs 63,360 per kg at 15:11 hours with a business turnover of 12,130 lots. The same for the May contract slides Rs 402, or 0.62 percent, to Rs 64,194 per kg with a turnover of 146 lots.

The value of March and May contracts traded so far is Rs 932.40 crore and Rs 2.11 crore, respectively.

The spot gold/silver ratio currently stands at 76.81 to 1 indicating that silver has outperformed gold.

Silver may witness choppy trade along with gold amid mixed factors however vaccine progress could keep the pressure on both gold and silver, said Kotak Securities.

At 09:43 (GMT), the precious metal was down 0.23 percent quoting at $24.03 an ounce in New York.

For all commodities-related news click here

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.