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Silver prices jump above Rs 68,000/kg on positive global trend, short covering

The spot gold/silver ratio currently stands at 70.62 to 1 indicating that silver has outperformed gold.

Mumbai / August 04, 2021 / 04:17 PM IST

Silver prices jumped on August 4 on short-covering of positions by participants as seen from the open interest. The precious metal had marginally risen 0.03 percent yesterday on the COMEX.

The white metal extended gains in the afternoon session after a gap-up start, tracking positive global cues.

The semi-precious metal has been trading higher than 5, 20 and 200 days’ moving averages but lower than the 50 and 100 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 50.43, which suggests sideways movement in the price.

Silver holdings in iShares ETF fell by 7.44 tonnes to 17,202.02 tonnes. The fund NAV is trading at a premium of 0.33 percent.

The US dollar index moderately jumped to 92.11, up 0.03 percent against the major cross in the afternoon session.

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Sriram Iyer, Senior Research Analyst at Reliance Securities said, “In other precious metals, international silver prices are trading in the green on Wednesday early afternoon trade in Asia, tracking the weakness of the U.S. Dollar. Technically, LBMA Silver holds a resistance of 21-Daily Moving Average at $25.65 below which could see a downside move up to $25.10-$24.30 levels. Resistance is at $25.77-$26.00 levels.”

“Domestic silver prices are trading in the green on Wednesday early afternoon trade, tracking overseas prices. Technically, MCX Silver September holds a resistance Rs 68,200-69,000 levels. Support is at Rs 67,100-66,700 levels”, Iyer noted.

The spot gold/silver ratio currently stands at 70.62 to 1 indicating that silver has outperformed gold.

MCX Bulldesk was up 17 points, or 0.12 percent, to 14,637 at 15:18. 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 68,300 and a low of Rs 67,956 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 65,656 and a high of Rs 75,215.

Silver delivery for the September contract gained Rs 282, or 0.42 percent to Rs 68,196 per kg at 15:19 hours with a business turnover of 8,387 lots. The same for the December contract rose Rs 310, or 0.45 percent, to Rs 69,080 per kg with a turnover of 1,947 lots.

The value of September and December’s contracts traded so far is Rs 588.83 crore and Rs 25.68 crore, respectively.

Similarly, the Silver Mini contract for August advanced Rs 290, or 0.43 percent at Rs 68,404 on a business turnover of 16,606 lots.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Silver is trading with marginally bullish momentum along with the support of 15-SMA of hourly chart placed at Rs 67,887. The resistance would be near Rs 68,275 and if price breaks above this level, we may expect bullish momentum towards Rs 68,800.”

At 0952 (GMT), the precious metal soared 0.67 percent and was quoting at $25.75 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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