Silver futures jump nearly 1% to Rs 65,559 per kg on industrial demand



Silver prices were 1 percent up at Rs 65,559 per kg on March 24 tracking advances in gold and industrial metals. The precious metal had declined 2.1 percent yesterday on the COMEX.

The white metal extended gains after a gap-up start in the afternoon session to trade at day’s high.

The semi-precious metal has been trading lower than 5, 20, 50 and 100 days’ moving averages but higher than 200-day moving averages on the daily chart. The Relative Strength Index (RSI) is at 42.49 which indicates bearish momentum in prices.

Silver holdings in iShares ETF were unchanged 18,221.86 tonnes. The fund NAV is trading at a discount of 2.33 percent.

The US dollar index traded higher at 92.46, up 0.13 percent in the afternoon trade against the major cross. The dollar index is trading at the highest level in four months.

The spot gold/silver ratio currently stands at 68.49 to 1 indicating that gold has outperformed silver.

MCX Bulldesk surged 70 points or 0.50 percent, at 14,169 at 15:24. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research said, “Market participants and traders were exceedingly pleased by FOMC press conference, which sparked a rally in both US equities as well as gold and silver prices, but if it sustains below Rs 64,800 levels then it is very likely that we will go towards the Rs 63,000 level. Silver has resistance at Rs 68,500 levels.

In the futures market, silver for May delivery touched an intraday high of Rs 65,600 and a low of Rs 65,058 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 587, or 0.90 percent to Rs 65,559 per kg at 15:27 hours with a business turnover of 11,659 lots. The same for the July contract jumped Rs 569, or 0.86 percent, to Rs 66,613 per kg with a turnover of 230 lots.

The value of May and July’s contracts traded so far is Rs 1,021.71 crore and Rs 14.53 crore, respectively.

Similarly, the Silver Mini contract for April edged higher Rs 468, or 0.72 percent at Rs 65,664 on a business turnover of 38,276 lots.

We expect gold to benefit from safe-haven buying and Fed’s dovish stance and this may lend support to silver as well. The trend in US dollar and bond yields may continue to be a key price-determining factor for gold and silver and the focus will be on economic data from major economies, central bank comments and development relating to virus situation as well as geopolitical tensions between the US-China, US-Russia, said Kotak Securities.

At 1002 (GMT), the precious metal was up 0.74 percent quoting at $ 25.41 an ounce in New York.