Silver prices were steady on July 7 after a sharp pullback towards the closing half in yesterday’s session. The precious metal recoups losses in the afternoon session after a gap-down start tracking weaker dollar.
The semi-precious metal has been trading higher than 20, 100 and 200 days’ moving averages but lower than the 5 and 50 days moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 50.17, which indicates neutral movement in the price.
The June FOMC minutes showed that the Federal Reserve is edging closer to tapering asset purchases.
Silver holdings in iShares ETF dropped by 57.67 tonnes to 17,295.94 tonnes. The fund NAV is trading at a discount of 0.90 percent.
The US dollar index eased to 92.47, down 0.19 percent against the major cross.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Silver has shown a negative movement and trade below Rs 69,500. The US 10-year yield tumbled on Wednesday, falling 5-basis points. This came despite the meeting minutes released by the Federal Reserve that showed that growth was improving. The level of $25.50 is crucial. The resistance is Rs 69,651 levels whereas support is at Rs 68200 level.”
The spot gold/silver ratio currently stands at 69.38 to 1 indicating that gold has outperformed silver.
MCX Bulldesk was marginally up 27 points or 0.18 percent, at 14,780 at 15:27. 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 69,620 and a low of Rs 68,730 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 gained Rs 63, or 0.09 percent to Rs 69,428 per kg at 15:29 hours with a business turnover of 10,737 lots. The same for the December contract rose Rs 51, or 0.07 percent, to Rs 70,707 per kg with a turnover of 435 lots.
The value of September and December’s contracts traded so far is Rs 1,121.60 crore and Rs 33.95 crore, respectively.
Similarly, the Silver Mini contract for August jumped Rs 22, or 0.04 percent at Rs 69,537 on a business turnover of 13,543 lots.
At 1000 (GMT), the precious metal gained 0.28 percent and quoting at $25.23 an ounce in New York.
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