Silver prices trade marginally higher on July 9 tracking a subdued trend in the gold price and weaker dollar. The precious metal had declined 0.5 percent yesterday on the COMEX.
The white metal recouped earlier losses to trade in positive territory after a gap-down start.
The semi-precious metal has been trading higher than 20, 100 and 200 days’ simple moving averages but lower than 5 and 20 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 46.59, which indicates weaker movement in the price.
Silver has witnessed choppy trade in the last few sessions amid directionless trade in gold and industrial metals. Gold is choppy as market players counter Fed’s monetary tightening against increased safe haven buying, said Kotak Securities.
Silver holdings in iShares ETF were unchanged at 17,295.94 tonnes, the lowest since mid-January. The fund NAV is trading at a discount of 0.74 percent.
The US dollar index fell to 92.34, down 0.06 percent against the major cross.
“LBMA Silver resistances are at $26.159 and $26.412. Supports are at $25.729 and $25.552. MCX Silver September supports are at Rs 68,507 and Rs 68,051 while resistances are at Rs 69,557 and Rs 70,151,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
The spot gold/silver ratio currently stands at 69.25 to 1 indicating that gold has outperformed silver.
MCX Bulldesk slightly increased 20 points or 0.15 percent, at 14,712 at 15:31. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, silver for September delivery touched an intraday high of Rs 69,152 and a low of Rs 68,425 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 67,700 and a high of Rs 75,215.
Silver delivery for the September contract gained Rs 170, or 0.25 percent to Rs 69,132 per kg at 15:32 hours with a business turnover of 11,616 lots. The same for the December contract jumped Rs 201, or 0.29 percent, to Rs 70,458 per kg with a turnover of 486 lots.
The value of September and December’s contracts traded so far is Rs 1,037.54 crore and Rs 9.46 crore, respectively.
Similarly, the Silver Mini contract for August edged higher Rs 120, or 0.17 percent at Rs 69,261 on a business turnover of 15,316 lots.
At 1006 (GMT), the precious metal rose 0.52 percent and quoting at $26.12 an ounce in New York.
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