Silver prices hover near Rs 62,700/kg on lacklustre gold, strong dollar

The value of September and December’s contracts traded so far is Rs 653.40 crore and Rs 72.46 crore, respectively.

Silver prices traded steady around Rs 62,700 per kg on August 10 on a stronger dollar and subdued trend in gold. The precious metal had fallen 1.35 percent August 9 on the COMEX.

The white metal pared earlier gains after a gap-up start, despite bullish global cues.

The semi-precious metal has been trading lower than 5, 20, 50, 100 and 200 days’ simple moving averages and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 26.31, which indicates a bearish movement in the price.

Atlanta Federal Reserve Bank President Raphael Bostic said yesterday the US economy is improving faster than expected, with the time when the Fed could start slowing its bond purchases nearing quickly and inflation already at a point that could satisfy one leg of a key test for rate hikes.

Silver holdings in iShares ETF were unchanged at 17,213.55 tonnes. The fund NAV is trading at a discount of 1.58 percent.

The US dollar index continued its uptrend and crossed 93 marks at 93.04, up 0.12 percent against the major cross in the afternoon session.

Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International silver prices are trading with gains on Tuesday early afternoon trade in Asia, tracking a rebound in gold prices. Technically, LBMA silver below $24.00 levels will continue its Bearish momentum up to $23.22-$22.70 levels. Resistance is at $23.88-$24.40 levels.”

“On the domestic front, MCX Silver September is sustaining below the pivotal Rs 63,300 and another trade below the level could pull prices to Rs 61,000-Rs 59,900 levels. Resistance is at Rs 63,300-Rs 64,000 levels,” Iyer stated.

The spot gold/silver ratio currently stands at 73.68 to 1, indicating that gold has outperformed silver, the highest since January 17.

MCX Bulldesk increased 14 points, or 0.10 percent, to 13,882 at 15:10. 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 63,239 and a low of Rs 62,701 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 62,318 and a high of Rs 75,215.

Silver delivery for the September contract jumped Rs 167, or 0.27 percent to Rs 62,804 per kg at 15:11 hours with a business turnover of 11,723 lots. The same for the December contract gained Rs 161, or 0.25 percent, to Rs 63,617 per kg with a turnover of 3,735 lots.

The value of September and December’s contracts traded so far is Rs 653.40 crore and Rs 72.46 crore, respectively.

Similarly, the Silver Mini contract for August advanced Rs 198, or 0.31 percent at Rs 63,165 on a business turnover of 23,698 lots.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Silver continue to move in sideways to marginally bearish momentum alongside resistance of 15-SMA of hourly chart placed at Rs 63,428. The price has tested a support low of the previous session at Rs 62,335 and if price breaks below this level, we may expect a bearish trend towards Rs 61,500.”

At 09:46 (GMT), the precious metal jumped 0.79 percent and was quoting at $23.45 an ounce in New York.

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