Silver prices fall below Rs 60,800 a kg on firm dollar, weak gold


Silver prices dipped below Rs 60,800 per kg, tracking a firm dollar, weakness in industrial metals and gold. The precious metal had fallen 0.17 percent on Monday on the COMEX.

Silver recouped some losses in the afternoon session before sliding back.

The white metal has been trading lower than the 20, 50, 100, and 200-day simple moving averages and exponential moving averages but higher than the 5-day simple and exponential moving average on the daily chart. The momentum indicator Relative Strength Index (RSI) was at 45.55, indicating a sideways trend in the price.

It recently saw a relief rally after a sharp selloff in gold and strength in the US dollar. Also weighing on the price is the uptick in 10-year Treasury yield inching closer to 1.5 percent.

Investors now await the US September non-farm payrolls report due on Friday, which is expected to show a continued improvement in the labour market, which could influence the Federal Reserve’s timeline for tapering economic support.

“International silver spot prices were weak this Tuesday afternoon in Asian trade, tracking the strength of the dollar. Technically, if LBMA Silver continues above the $ 22.00 level the markets could continue its upside momentum up to $ 23.10-$ 24.15 levels. Support is at $ 21.90-$ 20.77 levels,” Sriram Iyer, Senior Research Analyst at Reliance Securities, said.

“Technically, if MCX Silver December trades above Rs 60,500 level the markets could continue its upside momentum up to Rs 61,300-62,500 levels. Support is at Rs 60,200-59,500 levels”, Iyer said.

Silver holdings in iShares ETF rose 15.64 tonnes to 17,105.10 tonnes. The fund NAV is trading at a premium of 1.57 percent.

The US dollar index was up by 0.17 percent at 93.93 against the major currencies in the afternoon session.

The spot gold-silver ratio was at 77.85 to 1, indicating that silver had outperformed gold.

MCX Bulldesk decreased 51 points, or 0.37 percent, to 13,875 at 3.46 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 60,965 and a low of Rs 60,533 a kg. In the current series, the metal has touched a low of Rs 58,150 and a high of Rs 74,127.

Silver delivery for the December contract fell Rs 167, or 0.27 percent, to Rs 60,786 per kg at 3.47 pm with a business turnover of 11,392 lots. The same for March dropped Rs 156, or 0.25 percent, to Rs 61,279 with a turnover of 1,013 lots.

The value of December and March contracts traded so far is Rs 561.61 crore and Rs 10.09 crore, respectively.

The Silver Mini contract for November declined by Rs 121, or 0.20 percent, to Rs 61,052 on a business turnover of 28,436 lots.

At 10:23 (GMT), silver was 0.34 percent lower and was quoting at $ 22.56 an ounce in New York.

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