Silver prices inch closer to Rs 72,000/kg; forms bullish Engulfing Candlestick

Technically, LBMA Silver could trade on bullish momentum up to $27.90-$28.30 levels.

Mumbai / May 17, 2021 / 04:11 PM IST


Silver prices edged higher near to Rs 72,000 per kg on May 17 as participants increased their long positions as seen by the open interest. The precious metal maintained upside after a gap-up open tracking gains in gold and weaker US dollar.

The semi-precious metal has been trading higher than 5, 20, 50, 100 and 200 days’ simple and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 62.13, which indicates upbeat movement in prices.

Silver holdings in iShares ETF were unchanged at 17,598.97 tonnes. The fund NAV is trading at a premium of 0.71 percent.

The US dollar index dropped to 90.25, down 0.07 in the afternoon trade against the major cross.

The spot gold/silver ratio currently stands at 67.91 to 1 indicating that silver has outperformed gold.


MCX Bulldesk surged 107 points or 0.71 percent, at 15,086 at 15:23. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

Sriram Iyer, Senior Research at Reliance Securities said, “International silver prices are trading with solid gain on Monday early afternoon trade in Asia, tracking firm silver prices. Technically, LBMA Silver could trade on bullish momentum up to $27.90-$28.30 levels. Support is at $27.25-$26.50 levels.”

“Technically, MCX Silver July has formed a bullish Engulfing Candlestick indicating a sign of bullish reversal. A trade above Rs 71,500 can take prices up to Rs 72,700-73,350 levels. Support is at 70800-69700 levels.” “Iyer advised his clients to buy on dip Silver July for the rest of the session near Rs 71,800 with a stop loss of Rs 71,000 and for a target of Rs 73,000.”

In the futures market, silver for July delivery touched an intraday high of Rs 72,232 and a low of Rs 71,815 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 63,456 and a high of Rs 72,699.

Silver delivery for the July contract gained Rs 786, or 1.11 percent to Rs 71,871 per kg at 15:32 hours with a business turnover of 10,339 lots. The same for the September contract jumped Rs 798, or 1.11 percent, to Rs 72,987 per kg with a turnover of 228 lots.

The value of July and September’s contracts traded so far is Rs 1,285.61 crore and Rs 40.56 crore, respectively.

Similarly, the Silver Mini contract for April rose Rs 773, or 1.09 percent at Rs 71,890 on a business turnover of 13,728 lots.

At 1005 (GMT), the precious metal was up 1.41 percent quoting at $27.75 an ounce in New York.

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Disclaimer: The views and investment tips expressed by experts on are their own and not those of the website or its management. advises users to check with certified experts before taking any investment decisions.
Sandeep Sinha

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