Silver prices moderately jumped on September 8 on continued weakness in the rupee, positive Chinese data and a lacklustre trend in gold. The precious metal had dropped 1.7 percent yesterday on the COMEX.
The white metal traded in the green since morning, tracking the firm global cues.
The semi-precious metal has been trading higher than the 5 and 20-day moving averages but lower than the 50, 100, and 200 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 53.07, which suggests bullish movement in the price.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International silver prices are trading marginally firm this Wednesday afternoon in Asia. Technically, LBMA Silver holds resistance of 50-DMA at $ 24.80 levels and below which could see sideways to marginal downside momentum up to $ 24-23 levels. Resistance is at $ 24.60-$ 25.20 levels.”
“On the domestic front, technically MCX Silver December below Rs 65,000 level could test Rs 64,200-63,500 levels. Resistance is at Rs 65,500-66,200 levels,” Iyer noted.
Silver holdings in iShares ETF fell by 63.4 tonnes to 17,040.54 tonnes. The fund NAV is trading at a premium of 0.28 percent.
The US dollar index traded higher at 92.69, up 0.20 percent against the major cross in the afternoon session.
The spot gold-silver ratio stands at 73.81 to 1, indicating that silver has outperformed gold.
MCX Bulldesk increased by 43 points, or 0.30 percent, to 14,216 at 3:23 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
In the futures market, December silver delivery touched an intraday high of Rs 64,890 and a low of Rs 64,602 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 62,010 and a high of Rs 74,127.
Silver delivery for the December contract gained Rs 184, or 0.28 percent, to Rs 64,805 per kg at 3:27 pm with a business turnover of 8,649 lots. The same for March rose Rs 132, or 0.20 percent, to Rs 65,560 per kg with a turnover of 132 lots.
The value of December and March’s contracts traded so far is Rs 266.39 crore and Rs 1.77 crore, respectively.
Similarly, the Silver Mini contract for November edged higher Rs 167, or 0.25 percent to Rs 65,003 on a business turnover of 18,193 lots.
The trend in US dollar, bond yields and equities may continue to affect gold and silver and focus will be on economic data from major economies, central bank comments and development relating to virus situation,” said Kotak Securities.
At 1003 (GMT), the precious metal was slightly up 0.20 percent and was quoting at $ 24.42 an ounce in New York.
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