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Silver prices marginally lower on ETF outflow, weakness in gold and industrial metals

The momentum indicator Relative Strength Index (RSI) is at 50.29, which indicates neutral movement in the price.

Mumbai / June 09, 2021 / 03:57 PM IST
Silver

Silver

Silver prices traded marginally under pressure tracking ETF outflow, weakness in gold and industrial metals. The precious metal pared gains after a gap-up start in the afternoon session on a subdued global trend.

The semi-precious metal has been trading higher than 50, 100 and 200 days’ moving averages but lower than the 5 and 20 days’ moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 50.29, which indicates neutral movement in the price.

United States trade deficit narrowed in April to $68.9 billion or 8.2 percent buoyed by exports.

Investors are awaited US inflation data due tomorrow which could influence the Federal Reserve’s timeline to taper monetary support.

Silver holdings in iShares ETF fell by 7.9 tonnes to 17,953.80 tonnes. The fund NAV is trading at a discount of 0.36 percent.

Close

The US dollar index slightly eased to 90.02, down 0.06 percent against the major cross. The dollar has resistance at 90.20 level on 15-SMA hourly chart.

The spot gold/silver ratio currently stands at 68.50 to 1 indicating that gold has outperformed silver.

MCX Bulldesk modestly declined 13 points or 0.09 percent, at 15,186 at 15:25. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

“International spot silver prices are also subdued in lacklustre trade this Wednesday afternoon trade. Technically, LBMA Silver could trade in a range of $27.00-$28.65 levels”, said Sriram Iyer, Senior Research Analyst at Reliance Securities

“MCX Silver July holds support near Rs 71,000-70,200 levels. Resistance is at Rs 72,100-72.800 levels”, he added.

In the futures market, silver for July delivery touched an intraday high of Rs 71,415 and a low of Rs 71,057 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 74,222.

Silver delivery for the July contract slipped Rs 31, or 0.04 percent to Rs 71,200 per kg at 15:31 hours with a business turnover of 11,557 lots. The same for the September contract dropped Rs 44, or 0.06 percent, to Rs 72,387 per kg with a turnover of 1,113 lots.

The value of July and September’s contracts traded so far is Rs 596.59 crore and Rs 38.67 crore, respectively.

Similarly, the Silver Mini contract for June slides Rs 48, or 0.07 percent at Rs 71,255 on a business turnover of 14,460 lots.

At 1004 (GMT), the precious metal was slightly down 0.15 percent quoting at $27.69 an ounce in New York.

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

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