Silver prices rises to Rs 74,209 per kg in futures trade

Silver prices surged to Rs 74,209 per kg on August 6 as participants increased their long positions. The white metal has gained due to weakness in the dollar and the expectation of further stimulus to combat the coronavirus pandemic.

The record rally in gold prices as well as signs of improvement in manufacturing sector globally has increased buying interest for silver.

Silver holdings in iShares ETF rose by 159.31 tonne to 17,808.74 tonne, the highest on record.

In the futures market, silver for September delivery touched an intraday high of Rs 74,948 and a low of Rs 72,510 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 41,558 and a high of Rs 74,948.

Silver futures for September delivery contract jumped Rs 2,316, or 3.22 percent, to Rs 74,209 per kg at 14:26 hours on a business turnover of 14,928 lots. The same for December delivery edged higher by Rs 2,532, or 3.43 percent, to Rs 76,386 per kg on a turnover of 1,392 lots.

The value of September and December contracts traded so far is Rs 5,541.46 crore and Rs 88.89 crore, respectively.

The spot gold-to-silver ratio currently stands at 74.03 to 1, which means the amount of silver required to buy one ounce of gold.

Silver is expected to trade positively with support at Rs 71,500 and Rs 72,200 levels, according to Motilal Oswal.

At 09:05 (GMT), the precious metal was up 3.35 percent at $27.79 an ounce in New York.

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