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Silver prices near Rs 66,000/kg tracking firm trend in gold, industrial metals; faces resistance at Rs 66,300 level

Silver has been trading higher than the 5, 20, 50, and 100 days' simple moving averages but lower than 200-day moving averages on the daily chart.

Mumbai / October 25, 2021 / 04:26 PM IST
The spot gold-silver ratio was at 73.79 to 1, indicating that silver had outperformed gold

The spot gold-silver ratio was at 73.79 to 1, indicating that silver had outperformed gold

Silver prices edged higher near to Rs 66,000 per kg on October 25 tracking a positive trend in gold and industrial metal. The precious metal has risen by Rs 2,385 or 3.77 percent last week on the MCX.

Silver traded in the positive territory after a gap-up in the afternoon session, tracking the subdued global trend.

The precious metal has been trading higher than the 5, 20, 50, and 100 days' simple moving averages but lower than 200-day moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) was at 68.47, suggesting a buy in the price.

According to data from CFTC, speculators raised net long positions in Comex silver by 14,636 contracts to 19,608 in the week to October 19.

“Gold and silver prices could remain range bound in the coming week as investors continue to anticipate the Fed’s tapering next month. Rising US bond yields and rebounding US Dollar offset support from concerns over rising inflation and China's troubled property sector," said Sriram Iyer, Senior Research Analyst at Reliance Securities.

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“If LBMA Silver trades above $24.00 level, it could see sideways to marginal upside momentum up to $24.98-$26.30 levels. A trade below would pull prices to the support zones at $23.40-$22.70 levels. Domestically, if MCX Silver December trades above Rs 65,200 level, it could see a Bullish momentum up to Rs 66,700-67,600 levels. A trade below would pull prices to the support zones at Rs 64,700-63,000 levels”, Iyer added.

Silver holdings in iShares ETF remained unchanged for the third day at 17,000.01 tonnes. The fund NAV is trading at a premium of 0.08 percent.

The US dollar index was marginally up 0.13 percent at 93.75 against the major currencies in the afternoon session.

The spot gold-silver ratio was at 73.79 to 1, indicating that silver had outperformed gold.

MCX Bulldesk increased 56 points, or 0.39 percent, to 14,493 at 4.01 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 66,225 and a low of Rs 65,770 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 rose Rs 278, or 0.42 percent, to Rs 65,943 per kg at 4.02 pm with a business turnover of 9,846 lots. The same for March gained Rs 348, or 0.52 percent, to Rs 66,705 with a turnover of 2,979 lots.

The value of December and March’s contracts traded, so far, is Rs 727 crore and Rs 29.43 crore, respectively.

The Silver Mini contract for November soared Rs 290, or 0.44 percent, to Rs 66,076 on a business turnover of 22,223 lots.

NS Ramaswamy, Head of Commodities, Ventura Securities said, “After long consolidation phase, MCX SILVER prices have managed to close above the key moving averages on daily chart. Prices are now trading above the 100 EMA level on daily chart on closing basis which is now seen near Rs 64,300 level. It will act as immediate support for the prices. On the upside, MCX SILVER prices will face resistance at Rs 66,300 level, breaking above which prices are likely to head towards Rs 70,000 level in coming sessions.”

He advised his clients to buy BUY MCX SILVER DECEMBER in the range of Rs 65,000 to Rs 65,500 for the target of Rs 66,500-68000 with a stop loss below Rs 64,000.

Ventura Securities Ventura Securities

At 10.36 am GMT, silver was 0.04 percent higher, quoting at $24.44 an ounce in New York.
Sandeep Sinha

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