Silver prices climbed on August 23 tracking a positive trend in industrial metals as well as gold, while the dollar slipped. The precious metal had tumbled 2.4 percent on the MCX in the previous week.
The white metal extended gains after a gap-up start in the afternoon session, tracking the bullish global trend.
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 34.92, suggesting a weaker movement in the price.
Sriram Iyer, senior Research Analyst at Reliance Securities said, “International silver prices are trading higher on Monday early afternoon trade in Asia supported by a weaker dollar and strong gold. Technically, LBMA Silver above $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 61,500 level could see Rs 62,400-62,900 levels. Support is at Rs 61,000-60,400 levels”, Iyer added.
“If silver price unable to break and sustain above Rs 63,800, expect weakness to continue in the counter,” Geojit Financial Services said.
Investors will focus on the Fed’s annual economic symposium in Jackson Hole, Wyoming scheduled later in the week. Governor Jerome Powell is expected to outline the stance on monetary policy tightening, reduction in the bond purchase and the economic outlook.
The CFTC data showed that money managers decreased their net long positions by 2,146 lots last week.
Silver holdings in iShares ETF fell by 60.52 tonnes to 17,106.93 tonnes. The fund NAV is trading at a discount of 0.69 percent.
The US dollar index eased to 93.24, down 0.28 percent against the major cross in the afternoon session.
The spot gold-silver ratio stands at 76.44 to 1, indicating that silver has outperformed gold.
MCX Bulldesk jumped 48 points, or 0.34 percent, to 14,136 at 3 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 62,470 and a low of Rs 61,878 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 rose Rs 635, or 1.03 percent, to Rs 62,356 per kg at 3.02 pm with a business turnover of 9,203 lots. The same for December edged Rs 535, or 0.86 percent, higher to Rs 63,010 per kg with a turnover of 6,277 lots.
The value of September and December’s contracts traded, so far, is Rs 850.23 crore and Rs 203.18 crore, respectively.
Similarly, the Silver Mini contract for August gained Rs 562, or 0.91 percent to Rs 62,590 on a business turnover of 17,441 lots.
At 0935 (GMT), the precious metal was up 1.12 percent and was quoting at $23.37 an ounce in New York.
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