Silver prices were supported by improved demand outlook for industrial metal and weakness in the US dollar index
Silver prices plunged to Rs 67,220 per kg on August 14 as participants increased their short positions as seen by the open interest. The precious metal had come under intense selling pressure towards the close, tracking weakness in gold.
The white metal was down Rs 6,989, or 9.42 percent, for the week, but has been up 43.80 percent in 2020.
Silver holdings in iShares ETF fell by 217 tonnes to 17,855.07 tonnes, as investors booked profit.
In the futures market, silver for September delivery touched an intraday high of Rs 70,939 and a low of Rs 66,202 per kg on the MCX. So far, in the current series, the precious metal has touched a low of Rs 41,558 and a high of Rs 77,949.
Silver delivery for September contract declined by Rs 3,857, or 5.43 percent, to settle at Rs 67,220 per kg with a business turnover of 9,865 lots. The same for the December contract was down Rs 4,069, or 5.53 percent, to Rs 69,529 per kg with a turnover of 5,462 lots.
The value of August and September's contracts traded during the day was Rs 9,231.52 crore and Rs 498.24 crore, respectively.
The spot gold/silver ratio currently stands at 73.58 to 1, which means the amount of silver required to buy one ounce of gold.
Sumeet Bagadia, executive director, Choice Broking, said: “We are expecting MCX Silver prices to trade bullish in the coming month as ETF investments have shown further incline in the global markets."
"Moreover, silver prices to also find support as the industrial demand is expected to find further recoveries and global markets are expected to resume business activities," he said.
The precious metal settled with a loss of 4.27 percent quoting at $26.53 an ounce in New York.For all commodities related news, click here