Silver prices climbed to Rs 62,825 per kg on October 19 as participants increased their long positions as seen by the open interest. The precious metal had slipped 2.43 percent last week on the MCX.
Silver prices traded firm tracking gains in gold prices and weakness in the US dollar. The US dollar index trades lower at 93.39 levels down 0.31 percent.
Silver holdings in iShares ETF were unchanged for the third day at 17,527.43 tonnes.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International silver spot prices were firm this Monday afternoon in Asian trade tracking gains in gold and base metals. Weak dollar is also helping prices this Monday afternoon.”
Technically, LBMA Silver Spot has bounced back from the 21-day moving average which is placed at $23.96 levels indicating a positive breath in the counter. Resistance is placed at $25.20-$25.80 levels and Support is at $24.07-$23.12 levels.
Domestic silver futures on MCX tracked international prices and was trading with gains on Monday.
MCX iCOMDEX Bullion Index was up 117.29 points, or 0.76 percent, at 15,616.25 at 15:34. 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 62,851 and a low of Rs 61,177 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 edged higher by Rs 1,149, or 1.86 percent to Rs 62,825 per kg at 15:36 hours with a business turnover of 16,016 lots. The same for the March contract gained Rs 1,171, or 1.85 percent, to Rs 64,417 per kg with a turnover of 1,021 lots.
The value of December and March contracts traded so far is Rs 1,663.58 crore and Rs 26.25 crore, respectively.
The spot gold/silver ratio currently stands at 77.09 to 1 indicating that silver has outperformed gold.
Technically, MCX Silver December holds support near Rs 61,200 levels above which it will continue its sideways to marginal upside momentum up to Rs 62,900-63,300 levels, said Iyer.
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking Ltd said, “As for today traders can go for buy in Silver at Rs 61,000 levels, with the stop loss of Rs 60,200 levels and for the target of Rs 62,100 levels.”
At 10:09 (GMT), the precious metal was up 2.13 percent quoting at $24.92 an ounce in New York.
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