Silver prices were marginally lower on July 13 tracking the subdued global trend, and a firm dollar ahead of US CPI data to be released later in the day. The precious metal had posted modest gains of 0.18 percent yesterday on the COMEX.
The white metal turns negative after a gap-up start tracking in the afternoon session.
The semi-precious metal has been trading higher than 5, 20, 100 and 200 days’ simple moving averages but lower than the 50 day moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 49.61, which indicates sideways in the price.
Investors will keep an eye on US inflation data and Fed chief Jerome Powell's testimony scheduled later this week for further cues.
Silver holdings in iShares ETF were unchanged at 17,267.10 tonnes. The fund NAV is trading at a premium of 1.08 percent.
The US dollar index jumped to 92.36, up 0.12 percent against the major cross.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “In other precious metals, silver prices rose on Tuesday early afternoon trade in Asia, tracking gold and weak dollar. Technically, LBMA Silver is trading near 200-Daily Moving Average at $26.40 level and trade up to $26.50-$27.10 levels. Support is at $26.10-$25.70 levels.”
“Domestic silver prices are trading with small gains on Tuesday early afternoon trade, tracking overseas prices. Technically, if MCX Silver September above 69000 levels we could continue to witness a Bullish momentum up to Rs 69,900-70.900 levels. Support is at Rs 68,900-68,000 levels”, he added.
The spot gold/silver ratio currently stands at 69.13 to 1 indicating that silver has outperformed gold.
MCX Bulldesk marginally lowers 0.01 percent, at 14,721 at 15:23. 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 69,644 and a low of Rs 69,300 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 dropped Rs 92, or 0.13 percent to Rs 69,283 per kg at 15:25 hours with a business turnover of 10,532 lots. The same for the December contract slides Rs 103, or 0.15 percent, to Rs 70,550 per kg with a turnover of 506 lots.
The value of September and December’s contracts traded so far is Rs 512.98 crore and Rs 9.33 crore, respectively.
Similarly, the Silver Mini contract for August fell Rs 82, or 0.12 percent at Rs 69,439 on a business turnover of 13,684 lots.
At 0959 (GMT), the precious metal slightly up 0.01 percent, quoting at $26.24 an ounce in New York.
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