Silver prices climb back above Rs 59,600/kg on positive global cues

Silver prices mildly gained to trade above Rs 59,600 per kg on October 1 on short-covering of position by market players as seen by the open interest. The precious metal had risen 2.83 percent yesterday on the COMEX.

The precious metal traded in the green in the afternoon trade after a gap-down start, tracking the strong global trend.

The white metal has been trading lower than the 5, 20, 50, 100, and 200-day simple moving averages and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) was at 39.56, indicating softness in the price.

Silver recovered sharply yesterday tracking gains in gold as the dollar weakened after US jobless claims rose for the third successive week.

US Labour Department reported that the number of Americans filing jobless claims rose to 362,000 last week from 351,000 the week before.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Silver prices rose on Thursday, rebounding from a close below horizontal trend support and poised to test lower levels. The June 2020 lows of $16.25 are the target support. Short-term support for silver prices can be found near the recent breakdown level of $22.10 per ounce.”

Silver holdings in iShares ETF rose by 262.07 tonnes to 17,089.46 tonnes. The fund NAV is trading at a premium of 2.96 percent.

The US dollar index was slightly up 0.05 percent at 94.28 against the major currencies in the afternoon session.

The spot gold-silver ratio was at 79.04 to 1, indicating that silver had outperformed gold.

MCX Bulldesk fell 11 points, or 0.08 percent, to 13,757 at 3.42 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

On MCX, December silver delivery touched an intraday high of Rs 59,857 and a low of Rs 59,320 a kg. In the current series, the metal has touched a low of Rs 58,150 and a high of Rs 74,127.

Silver delivery for the December contract rose Rs 35, or 0.06 percent, to Rs 59,652 per kg at 3.44 pm with a business turnover of 13,118 lots. The same for March jumped Rs 76, or 0.13 percent, to Rs 60,175 with a turnover of 1,004 lots.

The value of December and March’s contracts traded, so far, is Rs 429.61 crore and Rs 8.65 crore, respectively.

The Silver Mini contract for November increased Rs 66, or 0.11 percent, to Rs 59,927 on a business turnover of 31,094 lots.

At 10:21 (GMT), silver was 0.87 percent higher and was quoting at $22.23 an ounce in New York.

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