A 35-paise drop in the rupee weighed on silver prices and pulled it down to Rs 61,500 per kg on October 11. Subdued cues in gold trade, firm trend in the dollar and industrial metals also became a drag on the precious metal.
Silver had risen Rs 1,251 or 2.07 percent last week on the MCX.
The white metal has been trading lower than the 50, 100, and 200-day simple and exponential moving averages but lower than the 5 and 20 days’ SMA and EMA on the daily chart. Momentum indicator Relative Strength Index (RSI) was at 49.49, highlighting a neutral movement in price.
“LBMA Silver spot has traded back and forth, formed an indecisive weekly candle over the last week. The dollar declined and yields moved higher. Treasury yields continue to rise despite a softer than expected US jobs data. On the domestic front, the price has formed a descending broadening wedge formation and past few sessions remained within a channel with marginally upside momentum this week,” said Kshitij Purohit, Product Manager, Currency and Commodities, CapitalVia Global Research Limited.
US employers added just 194,000 jobs in September, well below expectations. However, the unemployment rate dropped to an 18-month low of 4.8 percent. But there were signs of labour market tightness. Wage gains accelerated further, permanent job losses decreased and fewer people were experiencing long spells of unemployment.
Silver holdings in iShares ETF fell by 31.68 tonnes to 17,073.42 tonnes. The fund NAV is trading at a premium of 0.35 percent.
The US dollar index was marginally up by 0.19 percent at 94.25 against the major currencies in the evening session.
The spot gold-silver ratio was at 77.83 to 1, indicating that gold had outperformed silver.
MCX Bulldek mildly rose 6 points, or 0.04 percent, to 14,015 at 4.09 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
On the MCX, the December silver delivery touched an intraday high of Rs 61,889 and a low of Rs 61,395 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 slipped Rs 182, or 0.29 percent, to Rs 61,619 per kg at 4.10 pm with a business turnover of 10,832 lots. The same for March slides Rs 110, or 0.18 percent, to Rs 62,160 with a turnover of 1,347 lots.
The value of December and March contracts traded so far is Rs 786.97 crore and Rs 39.85 crore, respectively.
The Silver Mini contract for November slumped by Rs 158, or 0.25 percent, to Rs 61,851 on a business turnover of 26,587 lots.
At 10:43 (GMT), silver dipped 0.70 percent and was quoting at $ 22.54 an ounce in New York.
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