Silver futures up 2.46% in afternoon trade

Silver prices touched Rs 42,710 per kg on April 23 as participants increased their long positions.

According to Silver Institute's World Silver Survey 2020 report, rising demand for bar and coin from investors will offset the sharp fall in consumption by jewellers and industry and would push price towards $19 an ounce toward the end of 2020.

It sees silver benefiting from bargain hunting on the back of its historically low relative value compared to gold.

In the futures market, silver for May delivery touched an intraday high of Rs 42,837 and a low of Rs 42,152 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 33,580 and a high of Rs 50,123.

Silver delivery for May gained Rs 1,024, or 2.46 percent, to Rs 42,710 per kg at 15:00 hours. The same for July delivery rose Rs 988, or 2.33 percent, to Rs 43,391 per kg.

The value of May and July contracts traded so far is Rs 812.07 crore and Rs 93.11 crore, respectively.

The spot gold/silver ratio currently stands at 112.37 to 1, which means the amount of silver required to buy one ounce of gold.

"MCX Silver recovered from its bottom, but since the last two weeks it has been erasing its gains and continuing southwards move. On a weekly timeframe, price has faced resistance at its 61.8 percent Fibonacci Retracement level of the earlier downward, which indicate bearish movement may continue further," said Sumeet Bagadia, Executive Director, Choice Broking.

At 09:40 (GMT), the precious metal was up 2.2 percent quoting at $15.67 an ounce in New York.

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