Silver prices on September 21 soared above Rs 60,000 a kg snapping a four-day losing streak as industrial metals recovered, gold remained firm and the dollar weakened. The precious metal had fallen 0.6 percent yesterday on the COMEX.
Silver prices extended gain in the afternoon session after a flat start, tracking a positive global trend.
The white metal has been trading lower than the 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) was at 33.37, indicating weakness in the price.
The semi-precious metal has plunged sharply in the last few days as it faced selloff in gold and industrial metals on concerns about Fed’s monetary policy as well as China’s economic health.
Silver along with gold benefitted from safe-haven buying amid increasing nervousness in equity markets. ETF inflows also showed some buying interest in silver at lower levels, said Kotak Securities.
The brokerage firm added that silver may remain volatile as market players assess Fed’s monetary policy stance and China’s economic health. However, firmness in the US dollar may keep prices under pressure.
Silver holdings in iShares ETF jumped by 80.7 tonnes to 17,020.36 tonnes, the first inflow since August 31. The fund NAV is trading at a discount of 0.72 percent.
The US dollar index was mildly lower at 93.13, down 0.13 percent against the major currencies in the afternoon session.
The spot gold-silver ratio was at 78.33 to 1, indicating that silver had outperformed gold.
MCX Bulldesk increased 53 points, or 0.39 percent, to 13,784 at 3.45 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
On MCX, December silver delivery touched an intraday high of Rs 60,339 and a low of Rs 59,222 a kg. In the current series, the metal has touched a low of Rs 59,222 and a high of Rs 74,127.
Silver delivery for the December contract climbed Rs 657, or 1.10 percent, to Rs 60,226 per kg at 3.47 pm with a business turnover of 13,411 lots. The same for March gained Rs 616, or 1.02 percent, to Rs 61,000 with a turnover of 417 lots.
The value of December and March’s contracts traded so far is Rs 734.42 crore and Rs 11.10 crore, respectively.
The Silver Mini contract for November advanced Rs 649, or 1.08 percent, to Rs 60,631 on a business turnover of 30,610 lots.
At 1021 (GMT), silver was 1.68 percent higher and was quoting at $22.57 an ounce in New York.
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