Silver
Silver prices were marginally higher at Rs 67,162 per kg on March 17. The prices have found support from the US stimulus deal and hopes of a loose monetary policy stance of the Fed and other central banks.
Silver had a gap-up start in the afternoon session tracking firm gold and industrial metals. It had fallen 1.1 percent yesterday on the COMEX.
The semi-precious metal has been trading higher than 100 and 200 days’ moving averages but lower than 50, 20 and 5 days’ moving averages on the daily chart. The Relative Strength Index (RSI) is at 48.53 which indicates neutral momentum in prices.
Sunand Subramaniam, Senior Research Associates at Choice Broking said, “For the coming month, we are estimating MCX silver prices to trade mixed as ETF investment has shown slowdown in the global markets due to strong US Dollar Index. Correspondingly, silver prices also find support from the lower levels as the industrial demand is expected to find further recoveries and global markets are expected to resume business activities.”
“The gold-silver ratio which has come down to 65-66 levels still indicating cheaper silver prices which can support rates from the lower levels”, he said.
Silver holdings in iShares ETF remained unchanged at 18,415.33 tonnes, the lowest since January 28.
The US dollar index traded firm at 91.89, up 0.01 percent in the afternoon trade against the major cross.
MCX Bulldesk jumped 43 points or 0.30 percent, at 14,295 at 15:44. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “LBMA Silver Spot is sustaining below 50-Daily Moving Average which is placed at $ 26.35 level indicating for some downside pressure up to $ 25.55-$ 24.28 levels.”
“MCX Silver May is holding a resistance zone near Rs 67,800-67,930 level below which could see a downside momentum up to Rs 66,200-65,600 levels.” “Iyer advised his clients to buy May Silver future near Rs 66,700 with a stop loss of Rs 66,000 and for a target of Rs 69,800.”
In the futures market, silver for May delivery touched an intraday high of Rs 67,276 and a low of Rs 66,879 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 59,826 and a high of Rs 75,501.
Silver delivery for the May contract gained Rs 243, or 0.36 percent to Rs 67,162 per kg at 15:49 hours with a business turnover of 12,068 lots. The same for the July contract edged higher Rs 214, or 0.31 percent, to Rs 68,258 per kg with a turnover of 126 lots.
The value of May and July’s contracts traded so far is Rs 644.84 crore and Rs 1.63 crore, respectively.
Similarly, the Silver Mini contract for April soared Rs 265, or 0.40 percent at Rs 67,270 on a business turnover of 17,759 lots.
The spot gold/silver ratio currently stands at 66.73 to 1 indicating that gold has outperformed silver.
Kotak Securities said in line with gold, silver may remain choppy as risk sentiment affects gold and industrial metals differently however we expect gold to remain firm and this may support silver as well. The trend in the US dollar and bond yields may continue to be a key price determining factor for gold and silver.
At 1053 (GMT), the precious metal was up 0.28 percent quoting at $ 26.07 an ounce in New York.
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