Silver prices fell below Rs 66,000 per kg on October 26 on firm rupee, ETF outflows and weakness in gold and industrial metals. The precious metal has risen 0.57 percent yesterday on the COMEX.
Silver extended fall to trade near day’s low in the afternoon session after a gap-down start, tracking the muted global cues.
The precious metal has been trading higher than the 5, 20, 50, and 100 days' moving averages but lower than the 200-day moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) was at 65.41, suggesting a positive trend in the price.
US benchmark 10-year Treasury yields fell to a session low of 1.6200%, ahead of data and central bank meetings.
Investors will keep an eye on meetings from the Bank of Japan and the European Central Bank today.
“International silver prices have started weaker this Tuesday morning and early afternoon in Asian trade tracking the strength of the US Dollar. Technically, LBMA Silver resistances are at $25.00 and $26.30. Supports remain at $23.40 and $22.70," said Sriram Iyer, Senior Research Analyst at Reliance Securities.
Technically, MCX Silver December resistances are at Rs 66,700 and Rs 67,600. Supports are at Rs 65,700 and Rs 65,000, he added.
Silver holdings in iShares ETF fell by 63.34 tonnes at 16,936.7 tonnes. The fund NAV is trading at a premium of 0.75 percent.
The US dollar index was marginally down 0.06 percent at 93.76 against the major currencies in the afternoon session.
The spot gold-silver ratio was at 74.08 to 1, indicating that gold had outperformed silver.
MCX Bulldesk declined 56 points, or 0.39 percent, to 14,480 at 3.49 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 66,235 and a low of Rs 65,576 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 slipped Rs 440, or 0.67 percent, to Rs 65,699 per kg at 3.52 pm with a business turnover of 10,123 lots. The same for March tumbled Rs 560, or 0.84 percent, to Rs 66,329 with a turnover of 2,974 lots.
The value of December and March’s contracts traded, so far, is Rs 821.2 crore and Rs 40.11 crore, respectively.
The Silver Mini contract for November edged lower Rs 390, or 0.59 percent, to Rs 65,864 on a business turnover of 22,848 lots.
At 10.26 am GMT, silver was 0.79 percent lower, quoting at $24.39 an ounce in New York.
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