Silver prices eased close to Rs 61,000 per kg on a subdued trend in gold, dollar and mixed cues in industrial metals. The precious metal had risen 0.34 percent on October 7 on the COMEX.
Silver traded in the negative territory since morning, tracking the muted global trend.
The white metal has been trading lower than the 50, 100, and 200-day simple and exponential moving averages but lower than the 5 and 20 days’ SMA and EMA on the daily chart. The momentum indicator Relative Strength Index (RSI) was at 46.94, indicating a weak movement in the price.
Initial claims for US unemployment benefits decreased 38,000 to a seasonally adjusted 326,000 for the week ended October 2. The report helped to push bond yields higher and rally the US stock market a little bit, pressuring gold.
“International silver prices have started flat and turned negative this Friday evening in Asian trade, ahead of non-farm payrolls data tonight. Technically, if LBMA Silver continues below the $23.00 level the markets could continue its downside momentum up to $22.10-$21.33 levels. Resistance is at $22.90-$23.77 levels,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
“Technically, if MCX Silver December trades below Rs 61,000 level the markets could continue its downside momentum up to Rs 60,300-59,500 levels. Resistance is at Rs 60,200-59,500 levels”, he added.
Silver holdings in iShares ETF were unchanged for the third day at 17,105.10 tonnes. The fund NAV is trading at a discount of 0.51 percent.
The US dollar index was marginally fell by 0.06 percent at 94.16 against the major currencies in the evening session.
The spot gold-silver ratio was at 78.15 to 1, indicating that gold had outperformed silver.
MCX Bulldek climbed 18 points, or 0.13 percent, to 13,946 at 4.24 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
On MCX, December silver delivery touched an intraday high of Rs 61,145 and a low of Rs 60,910 a kg. In the current series, the metal has touched a low of Rs 58,150 and a high of Rs 74,127.
Silver delivery for the December contract slides Rs 164, or 0.27 percent, to Rs 61,094 per kg at 4.25 pm with a business turnover of 11,181 lots. The same for March tumbled Rs 182, or 0.0 percent, to Rs 61,508 with a turnover of 1,138 lots.
The value of December and March contracts traded so far is Rs 505.35 crore and Rs 9.22 crore, respectively.
The Silver Mini contract for November declined by Rs 182, or 0.30 percent, to Rs 61,312 on a business turnover of 27,343 lots.
At 10:58 (GMT), silver was 0.63 percent lower and was quoting at $22.51 an ounce in New York.
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