Silver prices climbed to Rs 68,271 per kg on May 3 as participants rolled over their long positions as seen by the open interest. The precious metal had fallen 0.36 percent last week on the MCX.
The white metal traded in the positive territory after a gap-up start in the afternoon session tracking firmness global cues.
The semi-precious metal has been trading higher than 5, 20, 50, 100 and 200 days’ moving averages on the daily chart for the July series. The momentum indicator Relative Strength Index (RSI) is at 56.99 which indicates bullish movement in prices.
Silver declined last week on rising Treasury yields and a steady US dollar.
Silver holdings in iShares ETF were unchanged at 17,650.65 tonnes. The fund NAV is trading at a discount of 0.04 percent.
The US dollar index was modestly lower at 91.16, down 0.12 percent in the afternoon trade against the major cross.
The spot gold/silver ratio currently stands at 68.07 to 1 indicating that silver has outperformed gold.
MCX Bulldesk soared 108 points or 0.74 percent, at 14,720 at 15:19. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research at Reliance Securities said, “In other precious metals, silver prices are trading with small gains early Monday afternoon trade in Asia, tracking gold and weaker dollar. Technically, LBMA spot silver supports are at $25.90 and $25.80, while resistances are at $26.20 and $26.45.”
Technically, MCX silver July contract could trade in the range from Rs 68,260-69,500, Iyer added.
In the futures market, silver for May delivery touched an intraday high of Rs 68,300 and a low of Rs 67,768 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 59,826 and a high of Rs 75,501.
Silver delivery for the May contract surged Rs 747, or 1.11 percent to Rs 68,271 per kg at 15:29 hours with a business turnover of 44 lots. The same for the July contract gained Rs 664, or 0.97 percent, to Rs 69,030 per kg with a turnover of 8,913 lots.
The value of May and July’s contracts traded so far is Rs 8.99 crore and Rs 935.21 crore, respectively.
Similarly, the Silver Mini contract for June edged higher Rs 612, or 0.89 percent at Rs 69,059 on a business turnover of 9,909 lots.
At 1002 (GMT), the precious metal was up 1.28 percent quoting at $26.20 an ounce in New York.
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