Silver prices rose for the second day on July 1 tracking firm gold prices, despite US Treasury and the dollar edging higher. The precious metal had gained 1.13 percent yesterday on COMEX and ended the first half of the year with a loss of minus 1.49 percent.
The white metal traded in the green after a gap-up start tracking firm global cues.
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 45.51, which indicates neutral movement in the price.
Silver holdings in iShares ETF fell by 34.6 tonnes to 17,361.13 tonnes, the lowest level since January. The fund NAV is trading at a premium of 1.35 percent.
The US dollar index jumped to 92.46, up 0.04 percent against the major cross.
“International silver prices are trading higher on Thursday early afternoon trade in Asia, tracking firm gold prices. Technically, LBMA Silver is trading above important support at the $26 level and could push prices up to $26.50-$26.70 levels. A trade below that could pull prices to $25.30 levels”, said Sriram Iyer, Senior Research Analyst at Reliance Securities.
“Domestic silver prices are trading with gains tracking overseas markets. Technically, MCX Silver July is trading above important support at Rs 68,000 levels which could now push prices up to Rs 69,500-70,200 levels,”, he added.
The spot gold/silver ratio currently stands at 67.66 to 1 indicating that silver has outperformed gold.
MCX Bulldesk increased 72 points or 0.50 percent, at 14,575 at 15:28. 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 69,726 and a low of Rs 69,335 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 67,700 and a high of Rs 75,215.
Silver delivery for the September contract climbed Rs 606, or 0.88 percent to Rs 69,680 per kg at 15:30 hours with a business turnover of 9,952 lots. The same for the December contract gained Rs 605, or 0.86 percent, to Rs 70,929 per kg with a turnover of 189 lots.
The value of September and December’s contracts traded so far is Rs 727.11 crore and Rs 19.74 crore, respectively.
Similarly, the Silver Mini contract for August soared Rs 561, or 0.81 percent at Rs 69,745 on a business turnover of 12,849 lots.
At 1002 (GMT), the precious metal was up 0.77 percent and quoting at $26.36 an ounce in New York.
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