Silver
Silver prices edged higher to Rs 66,990 per kg on April 8 as participants increased their long positions as seen by the open interest. The precious metal gained 0.1 percent yesterday on the COMEX.
The white metal recoups losses and turns into positive territory after a gap-down start in the afternoon session tracking gain in gold and industrial metals amid the dollar weakness.
The semi-precious metal has been trading higher than 5, 20, 100 and 200 days’ moving averages but lower than the 50-day moving average on the daily chart. The Relative Strength Index (RSI) is at 54.56 which indicates positive momentum in prices.
Silver holdings in iShares ETF were unchanged at 17,880.11 tonnes. The fund NAV is trading at a premium of 0.65 percent.
The US dollar index traded slightly lower at 92.37, down 0.10 percent in the afternoon trade against the major cross.
The spot gold/silver ratio currently stands at 69.11 to 1 indicating that silver has outperformed gold.
MCX Bulldesk increased 63 points or 0.43 percent, at 14,550 at 15:11. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Neha Qureshi, Technical Analyst at Reliance Securities said, “LBMA Silver Spot is trading above $ 25 will take prices further upside to $ 25.65-$ 26.20 levels. Support is at $ 24.90-$ 24.25 levels. MCX Silver May above Rs 66,500 could see an upside momentum up to Rs 66,900-68,000 levels. Support is at Rs 66,000-64,300 levels.”
Qureshi advised her clients to buy May Silver futures near Rs 66,800 with a stop loss of Rs 65,700 and a target of Rs 69,000.
In the futures market, silver for May delivery touched an intraday high of Rs 67,144 and a low of Rs 66,360 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 356, or 0.53 percent to Rs 66,990 per kg at 15:15 hours with a business turnover of 9,957 lots. The same for the July contract soared Rs 391, or 0.58 percent, to Rs 67,991 per kg with a turnover of 683 lots.
The value of May and July’s contracts traded so far is Rs 1,112.15 crore and Rs 43.30 crore, respectively.
Similarly, the Silver Mini contract for April jumped Rs 346, or 0.52 percent to touch Rs 67,017 on a business turnover of 12,679 lots.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “MCX Silver May showed a positive movement and trade above Rs 65,500 levels. The $ 25 level is an area that a lot of people will be paying close attention to, due to the fact that it is a large, round, and psychologically significant figure. If it sustains above Rs 67,000 then it can go towards Rs 68,000 whereas support is at Rs 65,500 levels.”
Silver may witness choppy trade as gold and industrial metals struggle for direction; however the general bias may be on the upside amid improving demand outlook, said Kotak Securities.
At 0951 (GMT), the precious metal was 0.22 percent higher, quoting at $ 25.30 an ounce in New York.
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