Silver prices soar above Rs 61,000 per kg on industrial demand, dollar downtick

Silver

Silver prices crossed Rs 61,000 per kg tracking gains in industrial metals and a weak dollar, but the upside was capped by a firm rupee. The precious metal had fallen 0.34 percent on October 7 on the COMEX.

Silver traded in the positive territory after a gap-down start in the afternoon session, tracking the strong 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 48.82, indicating a neutral movement in the price.

“LBMA Silver below $23.00 level could see sideways to marginal downside momentum up to $22.10-$21.33 levels. Resistance is at $22.90-$23.77 levels. MCX Silver December below 61000 level could see 60300-59500 levels. Resistance is at 61400-62000 levels,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

He advised his clients to sell December silver at Rs 61,000 with a stop loss of Rs 61,500 and a target of Rs 60,000.

Silver holdings in iShares ETF were unchanged for the second day at 17,105.10 tonnes. The fund NAV is trading at a premium of 1.59 percent.

The US dollar index was slightly lower by 0.07 percent at 94.21 against the major currencies in the afternoon session.

The spot gold-silver ratio was at 77.55 to 1, indicating that silver had outperformed gold.

MCX Bulldek soared 23 points, or 0.17 percent, to 13,956 at 4.19 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 61,499 and a low of Rs 60,925 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 gained Rs 395, or 0.65 percent, to Rs 61,398 per kg at 4.22 pm with a business turnover of 11,180 lots. The same for March jumped Rs 340, or 0.55 percent, to Rs 61,808 with a turnover of 1,084 lots.

The value of December and March contracts traded so far is Rs 777.22 crore and Rs 21.29 crore, respectively.

The Silver Mini contract for November edged higher by Rs 424, or 0.69 percent, to Rs 61,635 on a business turnover of 28,098 lots.

Recovery rallies are likely as long as Rs 60,000 hold the downside. A direct drop below Rs 58,000 is a weak signal, according to Geojit Financial Services.

At 10:57 (GMT), silver was 0.93 percent higher and was quoting at $22.74 an ounce in New York.

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