Silver
Silver prices were steady near Rs 60,000 a kg on September 20 on dollar uptick, subdued gold and weakness in industrial metals. The precious metal had tanked 5.66 percent last week on the MCX.
Silver managed to recouped morning losses and turn green in the afternoon session, tracking a positive global trend.
The white metal has been trading lower than the 5, 20, 50, 100 and 200-day simple moving averages and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) was at 30.65, indicating a sell in the price.
The prices slumped last week on selloff in gold and industrial metals as the dollar soared to a one-month high. Also weighing on the price was demand concerns due to slowdown in the Chinese economy and manufacturing activity globally.
Investors look forward to major central banks meet including Federal Reserve this week. Participants will be awaiting comments on the pace, timeline and guidance on bond tapering.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, “LBMA Silver spot has traded back and forth over last week, trading in bearish mode with some upside corrections, settled near $ 22.40. The price has declined with the rise in Dollar Index and 10-year bond yield as well as stronger economic data.”
He advised traders to go for sell opportunity in MCX Silver future from the level below Rs 60,000 maintaining a stop loss at Rs 60,900 to chase the target at Rs 58,750-58,500 in the coming week.
Speculators cut their long position in COMEX Silver contracts by 3,834 contracts to 14,078.
Silver holdings in iShares ETF were unchanged for the fourth day at 16,939.71 tonnes. The fund NAV is trading at a discount of 2.72 percent.
The US dollar index was up 0.23 percent at 93.38 against the major currencies in the afternoon session.
The spot gold-silver ratio was at 78.37 to 1, indicating that gold had outperformed silver. The Mint ratio has surged above the resistance 78 and is bearish for silver.
MCX Bulldesk rose 36 points, or 0.26 percent, to 13,733 at 3.37 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
On MCX, December silver delivery touched an intraday high of Rs 60,200 and a low of Rs 59,222 a kg. In the current series, the metal has touched a low of Rs 59,222 and a high of Rs 74,127.
Silver delivery for the December contract gained Rs 108, or 0.18 percent, to Rs 60,100 per kg at 3.39 pm with a business turnover of 13,547 lots. The same for March soared Rs 105, or 0.17 percent, to Rs 60,918 with a turnover of 324 lots.
The value of December and March’s contracts traded, so far, is Rs 927.98 crore and Rs 14.13 crore, respectively.
The Silver Mini contract for November jumped Rs 58, or 0.10 percent, to Rs 60,361 on a business turnover of 30,499 lots.
“Weak bias to continue for the day. Recovery upticks are seen only a close above Rs 61,900”, said Geojit Financial Services.
At 1013 (GMT), silver was 0.61 percent higher and was quoting at $ 22.47 an ounce in New York.
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