Silver prices fell below Rs 62,500 per kg on August 11 as gold struggles for direction and firm dollar. The precious metal had risen 0.53 percent yesterday on the COMEX.
The white metal traded in the red after a flat to gap-up start, tracking the bearish global trend.
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 25.15, which indicates an oversold level in the price.
Kkunal Parar, Vice President, Research and Development, Choice Broking said, “After a Breakout of Symmetrical Triangle formation, we have seen a good correction of the Silver and it seems that it may carry further if it gives a breakout of the previous bottom. Even it has given a breakdown of its 200 Days Moving Average after a long time which shows a negative trend for the time being.”
Moreover, on a smaller time frame, silver has already given a breakdown of the Neckline of Head and Shoulder formation after which we witnessed a good correction in meantime. The daily trend indicator MACD is trending with a negative crossover and below zero line and has just given a breakdown of its recent bottom which points out for a negative breath in the Silver.
Based on the Technical structure, one has to wait for silver to penetrate its recent bottom which is placed at Rs 62,500, if it happens then we can see further correction up to the level of Rs 59,700-56,200 while upside resistance comes at Rs 64,800, Parar noted.
Silver holdings in iShares ETF were unchanged for the second day at 17,213.55 tonnes. The fund NAV is trading at a discount of 0.24 percent.
The US dollar index traded higher at 93.17, up 0.13 percent against the major cross in the afternoon session.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “Technically, LBMA silver below $24.00 levels will continue its Bearish momentum up to $23.22-$22.70 levels. Resistance is at $23.60-$24.10 levels.”
“On the domestic front, MCX Silver September is sustaining below the pivotal Rs 63,000 level and could see Rs 61,000-59,900 levels. Resistance is at Rs 63,300-Rs 64,000 levels,” Iyer stated.
The spot gold/silver ratio currently stands at 74.26 to 1, indicating that gold has outperformed silver. The rise in the Mint ratio is a bearish sign for silver.
MCX Bulldesk increased 19 points, or 0.14 percent, to 13,895 at 15:40. 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 62,734 and a low of Rs 62,413 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 62,184 and a high of Rs 75,215.
Silver delivery for the September contract dropped Rs 153, or 0.24 percent to Rs 62,483 per kg at 15:39 hours with a business turnover of 12,207 lots. The same for the December contract slides Rs 163, or 0.26 percent, to Rs 63,275 per kg with a turnover of 4,113 lots.
The value of September and December’s contracts traded so far is Rs 478.21 crore and Rs 135.18 crore, respectively.
Similarly, the Silver Mini contract for August declined Rs 119, or 0.19 percent at Rs 62,830 on a business turnover of 24,483 lots.
At 1011 (GMT), the precious metal slipped 0.27 percent and was quoting at $23.32 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
