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Silver sees a mild dip on subdued cues in gold, industrial metals; support seen at Rs 62,300

Technically, LBMA Silver is trading below $24 which could see sideways to marginal downside momentum to $23.30-$22.88

Mumbai / September 14, 2021 / 04:06 PM IST

Silver prices fell on September 14, tracking ETF outflow and weakness in gold and industrial metals. The precious metal had fallen 0.4 percent on the COMEX the previous day.

Silver traded in the red after a gap-down start in the afternoon session, tracking a muted global trend. The semi-precious metal has been trading lower than its 5, 20, 50, 100 and 200-day simple moving averages and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 43.87, indicating a bearishness in the price.

Silver and gold have wavered in the last few days, reflecting the trend in the US dollar. Also weighing on silver is the slowdown in manufacturing activity globally and weaker investor interest, said Kotak Securities.

The brokerage firm said silver may continue to witness choppy trade along with gold, however, "we do not expect a sustained decline in gold and this may keep a floor to silver as well".

Silver holdings in iShares ETF fell by 34.6 tonnes to 16,939.71 tonnes, the lowest since November 2020. The fund NAV is trading at a premium of 0.69 percent.

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The US dollar index traded marginally lower at 92.50, up 0.15 percent against the major cross in the afternoon session.

The spot gold-silver ratio stands at 75.55 to 1, indicating that gold has outperformed silver.

MCX Bulldesk declined by 18 points, or 0.13 percent, to 14,072 at 3:07 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 63,277 and a low of Rs 63,070 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 fell Rs 129, or 0.20 percent, to Rs 63,170 per kg at 3.10 pm with a business turnover of 11,318 lots. The same for March dropped Rs 134, or 0.21 percent, to Rs 64,000 a kg with a turnover of 162 lots.

The value of December and March’s contracts traded, so far, is Rs 330.18 crore and Rs 6.33 crore, respectively.

Similarly, the Silver Mini contract for November slipped Rs 206, or 0.32 percent, to Rs 63,356 on a business turnover of 22,754 lots.

Sriram Iyer, Senior Research Analyst, Reliance Securities, said, “Technically, LBMA Silver is trading below $24.00 levels below which could see sideways to marginal downside momentum up to $23.30-$22.88 levels. Resistance is at $23.85-$24.00 levels.”

“Technically, MCX Silver December below Rs 63,800 level could see Rs 63,000-62,300 levels. Resistance is at Rs 64,000-64,700 levels." Iyer added.

Geojit Financial Services said, “Expect choppy trading with mild negative bias for the day. Further rallies are seen only a break of $24.60.”

At 0942 (GMT), the precious metal declined 0.54 percent and was quoting at $23.66 an ounce in New York.

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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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