Silver prices were moderately higher on August 24 tracking subdued movement in gold and firm dollar. The precious metal had increased 2.4 percent yesterday on the COMEX.
The white metal pared losses and turned into the green after a gap-down start in the afternoon session, tracking the muted overseas 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 average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 38.43, suggesting a bearish movement in the price.
Silver fell sharply in the last few days and we are now seeing some relief rally however the general bias is still weak owing to persistent demand concerns, said Kotak Securities.
Sriram Iyer, senior Research Analyst at Reliance Securities said, “International silver prices have started marginally weaker on Tuesday morning and early afternoon in Asian 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 62500 level could see Rs 63,200-63,900 levels. Support is at Rs 62,000-61,400 levels”, Iyer added.
Investors are now focused on Fed Chair Jerome Powell's speech at the annual Jackson Hole, Wyoming, symposium awaiting guidance on the US central bank's taper plans.
Silver holdings in iShares ETF fell by 21.6 tonnes to 17,085.32 tonnes. The fund NAV is trading at a premium of 0.76 percent.
The US dollar index traded marginally higher at 93.07, up 0.12 percent against the major cross in the afternoon session.
The spot gold-silver ratio stands at 76.14 to 1, indicating that silver has outperformed gold.
MCX Bulldesk was slightly up 1 point, or 0.01 percent, to 14,248 at 3:13 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, September silver delivery touched an intraday high of Rs 63,091 and a low of Rs 62,736 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 61,227 and a high of Rs 75,215.
Silver delivery for the September contract gained Rs 133, or 0.21 percent, to Rs 63,060 per kg at 3:20 pm with a business turnover of 7,987 lots. The same for December increased Rs 140, or 0.22 percent, to Rs 63,708 per kg with a turnover of 6,006 lots.
The value of September and December’s contracts traded, so far, is Rs 621.08 crore and Rs 157.89 crore, respectively.
Similarly, the Silver Mini contract for August mildly up Rs 46, or 0.07 percent to Rs 63,192 on a business turnover of 13,806 lots.
At 0956 (GMT), the precious metal was flat quoting at $23.65 an ounce in New York.
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