Silver prices were steady on June 28 tracking subdued gold prices and dollar weakness. The precious metal gained Rs 293 or 0.43 percent last week on the MCX.
The white metal traded in the positive territory after a gap-up start tracking muted global cues.
The semi-precious metal has been trading lower than 20, 50 and 100 days’ moving averages but higher than the 5 and 200-days’ moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 37.37, which indicates weaker movement in the price.
According to CFTC data, speculators reduced net longs position by 16,675 contracts to 29,882 in the week to June 22.
Silver holdings in iShares ETF fell by 54.8 tonnes to 17,395.73 tonnes. The fund NAV is trading at a discount of 0.28 percent.
The US dollar index dipped to 91.75, down 0.09 percent against the major cross.
“In other precious metals, silver was also up on Monday afternoon trade in Asia, tracking weak dollar. Technically, if LBMA Silver sustains above $26.00 level and will continue its bullish momentum up to $26.30-$26.90 levels. Support is at $25.90-$25.00 levels”, said Sriram Iyer, Senior Research Analyst at Reliance Securities.
“Domestic silver was up on Monday afternoon trade, tracking overseas prices. Technically, If MCX Silver July trades above 67500 levels we could witness a continuation of its bullish momentum up to 68200-70000 levels. Support is at 67000-65800 levels”, Iyer added.
The spot gold/silver ratio currently stands at 68.18 to 1 indicating that silver has outperformed gold.
MCX Bulldesk eased 4 points or 0.03 percent, at 14,510 at 15:31. 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 68,344 and a low of Rs 67,814 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 gained Rs 70, or 0.10 percent to Rs 67,943 per kg at 15:32 hours with a business turnover of 5,925 lots. The same for September contract rose Rs 60, or 0.09 percent, to Rs 69,010 per kg with a turnover of 8,319 lots.
The value of July and September’s contracts traded so far is Rs 858.07 crore and Rs 617.13 crore, respectively.
Similarly, the Silver Mini contract for June edged higher Rs 52, or 0.08 percent at Rs 68,102 on a business turnover of 781 lots.At 1004 (GMT), the precious metal was up 0.25 percent and quoting at $26.15 an ounce in New York.