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Last Updated : Oct 16, 2020 04:09 PM IST | Source: Moneycontrol.com

Silver futures trade firm at Rs 61,850 per kg; experts see further upside

Silver has been stuck in a broad range as market players await more clarity on US stimulus.

Silver prices climbed to Rs 61,850 per kg on October 16 as participants increased their long positions as seen by the open interest. The precious metal had slipped 0.7 percent yesterday on the COMEX.

Silver has been stuck in a broad range as market players await more clarity on US stimulus.

The number of new claims for unemployment benefits in the US surged last week as the pandemic continued to hamper the world’s largest economy.


Silver prices traded firm tracking weakness in the US dollar. The US dollar index trades lower at 93.70 levels down 0.17 percent.

Silver holdings in iShares ETF were unchanged for the second day at 17,527.43 tonnes.

Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International silver spot prices were firm this Friday afternoon in Asian trade as the dollar fell from the highs of the session. Technically, LBMA Silver Spot has bounced back from 21-Day Moving Average 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 modest gains this Friday afternoon trade, he said.

MCX iCOMDEX Bullion Index was up 17.95 points, or 0.12 percent, at 15,547.77 at 15:16. 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 62,075 and a low of Rs 61,361 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 315, or 0.51 percent to Rs 61,850 per kg at 15:18 hours with a business turnover of 15,626 lots. The same for the March contract gained Rs 131, or 0.21 percent, to Rs 63,378 per kg with a turnover of 1,018 lots.

The value of December and March contracts traded so far is Rs 1,164.94 crore and Rs 21.88 crore, respectively.

The spot gold/silver ratio currently stands at 78.35 to 1, indicating that silver has outperformed gold.

Technically, MCX Silver December holds support near Rs 61,300 levels above which will continue its sideways to marginal upside momentum up to Rs 62,200-63,000 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 61,300 levels, with the stop loss of Rs 60,800 levels and for the target of Rs 62,400 levels.”

At 09:52 (GMT), the precious metal was up 0.98 percent quoting at $24.46 an ounce in New York.

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First Published on Oct 16, 2020 04:09 pm