Silver prices traded in the red on Thursday evening session tracking stronger rupee and weakness in gold amid volatile trade. Market participants are now awaiting fresh triggers which may come from US economic data.
The semi-precious metal has been trading higher than 50, 100 and 200 days’ moving averages but lower than the 5 and 20 days’ moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 52.58, which indicates sideways movement in the price.
The white metal prices were weighed down by concerns about China’s demand as it increases efforts to curb rising raw material prices.
Silver holdings in iShares ETF were unchanged for the second day at 17,936.56 tonnes. The fund NAV is trading at a discount of 1.58 percent.
The US dollar index traded lower at 89.92, down 0.15 against rival currencies; whereas US 10-year Treasury yields rose 2 basis points to 1.59 percent.
The spot gold/silver ratio currently stands at 68.61 to 1 indicating that silver has outperformed gold.
MCX Bulldesk eased 50 points or 0.39 percent, at 15,201 at 17:01. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research at Reliance Securities said, “International silver prices are trading in the red on Thursday evening trade in Asia. Technically, LBMA Silver holds a hurdle near $28.30 level below which could see sideways momentum to bearish momentum. However, a strong breakout could take prices up to $28.66-$29.20 levels. Support is at $26.95 $26.30 levels.”
“Technically, MCX Silver July if sustains above Rs 71,000 level can take prices up to Rs 71,900-72,700 levels. Support is at 70700-69900 levels.” “Iyer advised his clients to buy on dips Silver July for the rest of the session near Rs 71,000 with a stop loss at Rs 70,000 and a target of Rs 73,000.”
In the futures market, silver for July delivery touched an intraday high of Rs 71,577 and a low of Rs 70,968 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 63,456 and a high of Rs 74,222.
Silver delivery for the July contract fell Rs 364, or 0.51 percent to Rs 71,047 per kg at 17:06 hours with a business turnover of 11,593 lots. The same for the September contract slipped Rs 436, or 0.60 percent, to Rs 72,155 per kg with a turnover of 451 lots.
The value of July and September’s contracts traded so far is Rs 1,412.57 crore and Rs 13.68 crore, respectively.
Similarly, the Silver Mini contract for June slides by Rs 365, or 0.51 percent at Rs 71,120 on a business turnover of 17,074 lots.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Silver is trading with negative bias and we may expect prices to rise in the evening session where the market may test Rs 71,700-72,000 on the upside.”
Gold’s rally is showing signs of exhausting while industrial metals are also mired by China’s price control measures and this may keep pressure on silver price, said Kotak Securities.
At 1140 (GMT), the precious metal was down 0.80 percent quoting at $27.65 an ounce in New York.
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