Silver prices drop below Rs 72,000 per kg on firm dollar and weakness in gold. The precious metal continues to trade in negative after a gap-down start in the evening session.
The semi-precious metal has been trading higher than 5, 20, 50, 100 and 200 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 55.78, which indicates a mildly bullish movement in the price.
Silver holdings in iShares ETF were unchanged for the fifth day at 17,936.56 tonnes. The fund NAV is trading at a discount of 1.24 percent.
The US dollar index traded higher at 90.21, up 0.44 percent against the major cross in the evening session.
The spot gold/silver ratio currently stands at 68.32 to 1 indicating that gold has outperformed silver.
MCX Bulldesk eased 11 points or 0.07 percent, at 15,305 at 16:46. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research at Reliance Securities said, “In other precious metals, international silver inched lower on Wednesday evening trade in Asia, tracking weak gold and a strong dollar. Technically, LBMA Silver holds a strong resistance near $ 28.50-$ 29.66 levels. Support is at $ 27.30-$ 26.88 levels.”
“Technically, MCX Silver July below Rs 71,700 could take prices up to Rs 70,700-69,800 levels. Resistance is at Rs 72,300-73,000 levels,” Iyer said.
In the futures market, silver for July delivery touched an intraday high of Rs 72,189 and a low of Rs 71,698 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 74,222.
Silver delivery for the July contract slipped Rs 424, or 0.59 percent to Rs 71,824 per kg at 16:48 hours with a business turnover of 11,417 lots. The same for the September contract dropped Rs 341, or 0.46 percent, to Rs 73,072 per kg with a turnover of 679 lots.
The value of July and September’s contracts traded so far is Rs 1,325.91 crore and Rs 38.80 crore, respectively.
Similarly, the Silver Mini contract for June slides by Rs 338, or 0.47 percent at Rs 71,941 on a business turnover of 14,084 lots.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “International Silver is trading with negative bias below $ 28 levels and in the upcoming session support of $ 27.50-27.70 levels could be tested. MCX Silver is trading below 20-SMA and we may expect the market to trade in a marginal sideways and downtrend during the evening session where Rs 71,500 levels could be tested on the downside.”
At 1124 (GMT), the precious metal was down 0.90 percent quoting at $ 27.85 an ounce in New York.
For all commodities-related news, click here
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.