Silver prices slide below Rs 65,500/kg as US Treasury yield, dollar rebound


Silver prices fell below Rs 65,500 per kg on October 21 as the US Treasury yield rebounded and the US dollar firmed up. The precious metal has risen 2.35 percent yesterday on the COMEX.

Silver pared earlier gains and turned weaker in the afternoon session, tracking the muted global trend.

The precious metal has been trading higher than the 5, 20, 50 and 50 days’ simple moving averages but lower 200-day moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) was at 68.03, reflecting an upbeat movement in the price.

Investors will keenly watch weekly jobless data due later today and a series of speeches from officials including Mary Daly and Chair Jerome Powell, ahead of the central bank’s meeting next month.

“International silver prices have started higher and turned negative this Thursday afternoon in Asian trade. Technically, LBMA Silver resistances are at $ 24.88 and $ 25.70. Supports are at $ 23.70 and $ 22.99,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Technically, MCX Silver December resistances are at Rs 65,900 and Rs 66,200. Supports are at Rs 64,700 and Rs 64,000, Iyer added.

Meanwhile, Fed Governor Christopher Waller said if inflation keeps rising at its current pace in the next few months, policymakers may need to adopt “a more aggressive policy response” next year.

Fed Governor Randal Quarles said while it is time for the Fed to begin dialling down its bond-buying program, it would be premature to start raising interest rates in the face of high inflation that is likely to recede next year.

Silver holdings in iShares ETF fell by 95.01 tonnes to 17,000.01 tonnes. The fund NAV is trading at a premium of 1.56 percent.

The US dollar index was slightly up 0.13 percent at 93.65 against the major currencies in the afternoon session.

The spot gold-silver ratio was at 73.66 to 1, indicating that silver had outperformed gold.

MCX Bulldesk increased 9 points, or 0.06 percent, to 14,346 at 3.38pm. 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 65,925 and a low of Rs 65,063 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 dropped Rs 166, or 0.25 percent, to Rs 65,441 per kg at 3.41 pm with a business turnover of 9,131 lots. The same for March eased Rs 27, or 0.04 percent, to Rs 66,149 with a turnover of 2,701 lots.

The value of December and March’s contracts traded, so far, is Rs 1,364.01 crore and Rs 26.02 crore, respectively.

The Silver Mini contract for November dipped Rs 32, or 0.05 percent, to Rs 65,653 on a business turnover of 24,110 lots.

At 10.20 am GMT, silver was 0.36 percent lower, quoting at $ 24.35 an ounce in New York.

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