Silver prices were trading steady on July 30 owing to subdued gold trend and weak economic data. The precious metal had risen 3.6 percent yesterday on the COMEX.
The white metal maintained downside after a gap-down start in the afternoon session on a weak global trend.
The semi-precious metal has been trading higher than 5 and 200 days’ moving averages but lower than the 20, 50, and 100 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 49.25, which suggests sideways movement in the price.
Silver price surged sharply yesterday as gold edged higher on Fed’s dovish stance while industrial metals benefitted from a weaker dollar.
The US economy grew at a 6.5 percent annualised rate last quarter, below a forecast for an 8.5 percent rise by economists in a poll.
US Labour Department reported that the number of Americans filing unemployment benefits declined by 24,000 to 400,000 for the week ended July 23.
Silver holdings in iShares ETF were unchanged for the second day to 17,177.76 tonnes. The fund NAV is trading at a premium of 0.53 percent.
The US dollar index modestly rose to 91.88, up 0.01 percent against the major cross in the afternoon session.
Kotak Securities said silver may witness choppy trade along with gold and industrial metals as Fed’s stance and Chinese economic outlook is assessed; however, demand concerns may continue to weigh on prices.
The spot gold/silver ratio currently stands at 71.58 to 1 indicating that gold has outperformed silver.
MCX Bulldesk was up 2 points, or 0.01 percent, to 14,764 at 15:36. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, silver for September delivery touched an intraday high of Rs 68,200 and a low of Rs 67,850 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 65,656 and a high of Rs 75,215.
Silver delivery for the September contract dropped Rs 146, or 0.21 percent to Rs 68,054 per kg at 15:37 hours with a business turnover of 8,406 lots. The same for the December contract slipped Rs 114, or 0.17 percent, to Rs 68,932 per kg with a turnover of 1,346 lots.
The value of September and December’s contracts traded so far is Rs 500.97 crore and Rs 32.65 crore, respectively.
Similarly, the Silver Mini contract for August edged lower Rs 166, or 0.24 percent at Rs 68,234 on a business turnover of 16,687 lots.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “Technically, LBMA Silver could trade within the range of $24.80-$26.10 levels. On the domestic front, MCX Silver September resistances are at Rs 68,700 and Rs 69,500. Supports are at Rs 67,700 and Rs 67,000.”
At 1015 (GMT), the precious metal eased 0.78 percent and was quoting at $25.58 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
