Silver prices rise near Rs 71,000/kg on ETF inflows, US dollar pullback



Silver prices climbed to Rs 70,880 per kg on May 14 as participants increased their long positions as seen by the open interest. The precious metal extended gains after a gap-down start in the afternoon session, tracking ETF inflows, dollar weakness and firm gold.

The semi-precious metal has been trading higher than 20, 50, 100 and 200 days’ moving averages but lower than the 5-day moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 57.83, which indicates bullish movement in prices.

Silver holdings in iShares ETF rose 60.59 tonnes to 17,598.97 tonnes. The fund NAV is trading at a premium of 1.08 percent.

The US dollar index eased to 90.54, down 0.21 in the afternoon trade against the major cross.

The spot gold/silver ratio currently stands at 67.42 to 1 indicating that silver has outperformed gold.

MCX Bulldesk soared 54 points or 0.36 percent, at 14,948 at 15:57. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “Silver price has sharp fall in the previous second-half of session and traded in a narrow range of Rs 70,585-70,391 with some selling pressure on the top at Rs 70,730. The US dollar faced resistance at 90.90 and pulled back towards the support at 90.70. If the Dollar Index manages to settle below this level, it will move towards the support at 90.50 which will be bullish for silver today.”

In the futures market, silver for July delivery touched an intraday high of Rs 71,146 and a low of Rs 70,085 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 63,456 and a high of Rs 72,699.

Silver delivery for the July contract gained Rs 407, or 0.58 percent to Rs 70,880 per kg at 16:04 hours with a business turnover of 10,118 lots. The same for the September contract edged higher Rs 348, or 0.49 percent, to Rs 71,950 per kg with a turnover of 236 lots.

The value of July and September’s contracts traded so far is Rs 1,452.19 crore and Rs 27.77 crore, respectively.

Similarly, the Silver Mini contract for June soared Rs 356, or 0.59 percent at Rs 70,883 on a business turnover of 13,648 lots.

At 10:36 (GMT), the precious metal was up 0.84 percent to quote at $ 27.28 an ounce in New York.

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