Silver prices traded in the positive territory after two days of decline on dollar downtick and firmness in gold. The precious metal traded in the positive territory after a gap-up start on a firm 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 51.66, which indicates neutral movement in the price.
The volatility in precious metal will likely remain elevated during the initial reaction and days following the Federal Reserve monetary policy announcement.
Silver holdings in iShares ETF were unchanged at 17,946.59 tonnes. The fund NAV is trading at a premium of 0.45 percent.
The US dollar index slightly lower to 90.45, down 0.01 percent against the major cross.
“In other precious metals, international silver prices are higher on Wednesday early afternoon trade in Asia. Technically, LBMA Silver below $28.00 will continue its bearish momentum and could see further downside movement up to $27.20-$26.70 levels. Resistance is at $28.10-$28.55 levels”, said Sriram Iyer, Senior Research Analyst at Reliance Securities.
“Domestic silver prices are trading higher on Wednesday early afternoon trade, tracking overseas prices. Technically, MCX Silver July holds support near 70800-69900 levels. Resistance is at 72000-73100 levels”, Iyer added.
The spot gold/silver ratio currently stands at 66.97 to 1 indicating that silver has outperformed gold.
MCX Bulldesk rose 30 points or 0.20 percent, at 15,075 at 15:58. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, silver for July delivery touched an intraday high of Rs 71,689 and a low of Rs 71,444 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 jumped Rs 307, or 0.43 percent to Rs 71,555 per kg at 15:59 hours with a business turnover of 10,802 lots. The same for the September contract gained Rs 345, or 0.48 percent, to Rs 72,767 per kg with a turnover of 1,865 lots.
The value of July and September’s contracts traded so far is Rs 768.24 crore and Rs 93.33 crore, respectively.
Similarly, the Silver Mini contract for June edged higher Rs 299, or 0.42 percent at Rs 71,599 on a business turnover of 12,556 lots.
At 1033 (GMT), the precious metal soared 0.65 percent and was quoting at $27.87 an ounce in New York.
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