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Silver prices up marginally on weak rupee, trade above short-term averages

The momentum indicator Relative Strength Index (RSI) is at 56.79, which suggests a buy.

Mumbai / September 06, 2021 / 03:55 PM IST
Silver

Silver

Silver prices rose marginally on September 6 owing to rupee depreciation and subdued trend in gold. The precious metal declined Rs 359 or 0.57 percent last week on the MCX.

The white metal traded in the green after a gap-up start in the afternoon session, tracking the mildly positive global cues.

The semi-precious metal has been trading higher than the 5 and 20-day moving averages but lower than the 50, 100, and 200 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 56.79, which suggests a buy.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research said, “Silver prices soared on Friday as the dollar fell more in the aftermath of a weaker-than-expected US jobs data. Despite revisions to July and June, the lower-than-expected NPF number weighed on the dollar, helping silver price rise.”

“Gold prices also increased, boosting the value of the entire precious metals complex. Silver prices soared higher, slamming into resistance near the July highs, which also happened to be near the 50-day moving average”, he added.

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Silver holdings in iShares ETF were unchanged at 17,103.92 tonnes. The fund NAV is trading at a premium of 2.69 percent.

The US dollar index traded higher at 92.29, up 0.28 percent against the major cross in the afternoon session.

The spot gold-silver ratio stands at 73.70 to 1, indicating that silver has outperformed gold.

MCX Bulldesk fell by 14 points, or 0.10 percent, to 14,322 at 3:18 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

In the futures market, December silver delivery touched an intraday high of Rs 65,513 and a low of Rs 65,218 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 62,010 and a high of Rs 74,127.

Silver delivery for the December contract gained Rs 136, or 0.21 percent, to Rs 65,345 per kg at 3:20 pm with a business turnover of 8,131 lots. The same for March jumped Rs 156, or 0.24 percent, to Rs 66,150 per kg with a turnover of 122 lots.

The value of December and March’s contracts traded, so far, is Rs 299.12 crore and Rs 4.76 crore, respectively.

Similarly, the Silver Mini contract for November soared Rs 144, or 0.22 percent to Rs 65,501 on a business turnover of 17,015 lots.

Geojit Financial Services said, “Consistent trades above Rs 64,000 will continue rallies in near future. A direct drop below Rs 61,500 is a weak signal.”

At 10:00 (GMT), the precious metal was up 0.02 percent and was quoting at $24.01 an ounce in New York.

For all commodities-related news, click here

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sandeep Sinha

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