Silver prices rose on August 17 tracking recovery in gold on safe-haven buying and pullback in US Treasury yields. The precious metal had risen 0.1 percent yesterday on the COMEX.
The white metal extended trading in the positive territory after a gap-up start tracking the firm global cues.
The semi-precious metal has been trading lower than 20, 50, 100 and 200 days’ moving averages but higher than the 5-day moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 37.73, which suggest weakness in the price.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International silver prices are trading with gains on Tuesday early afternoon trade. Technically, LBMA Silver above the $23.00 level could see $24.10-$25.22 levels. Support is at $23.40-$22.65 levels.”
“On the domestic front, Technically, MCX Silver September above Rs 63,000 level could see Rs 63,900-64400 levels. Support is at Rs 62,900-62,000 levels,” Iyer added.
Investors will take a further cue from Fed chief Jerome Powell’s speech later in the day and release of Fed’s minute tomorrow for cues on the central bank’s stimulus tapering.
Silver holdings in iShares ETF were unchanged for the second day at 17,276.95 tonnes. The fund NAV is trading at a premium of 1.33 percent.
The US dollar index jumped to 92.67, up 0.06 percent against the major cross in the afternoon session.
The spot gold/silver ratio currently stands at 75.05 to 1, indicating that silver has outperformed gold.
MCX Bulldesk surged 66 points, or 0.46 percent, to 14,267 at 15:21. 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 63,866 and a low of Rs 63,483 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 61,536 and a high of Rs 75,215.
Silver delivery for the September contract rose Rs 290, or 0.46 percent to Rs 63,747 per kg at 15:28 hours with a business turnover of 9,671 lots. The same for the December contract edged higher Rs 310, or 0.48 percent, to Rs 64,518 per kg with a turnover of 4,519 lots.
The value of September and December’s contracts traded so far is Rs 490.37 crore and Rs 69.21 crore, respectively.
Similarly, the Silver Mini contract for August gained Rs 279, or 0.44 percent at Rs 63,997 on a business turnover of 19,999 lots.
Kotak Securities said the trend in US dollar, bond yields and equities may continue to affect gold and silver and the focus will be on economic data from major economies, central bank comments and development relating to coronavirus situation, US infrastructure bill, China’s regulatory crackdown and political situation in Afghanistan.
At 1005 (GMT), the precious metal jumped 0.40 percent and was quoting at $23.88 an ounce in New York.
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