Silver prices slipped to Rs 63,000 a kg on September 15 on dollar volatility and a muted trend in gold. The precious metal had risen 0.4 percent on Comex the previous day.
The white metal traded in the red after a gap-down start, tracking tepid global cues. The metal has been trading lower than its 5, 50, 100 and 200-day moving averages but higher than the 20-day moving average on the daily chart.
The momentum indicator Relative Strength Index (RSI) was at 46.03, indicating a weakness in the price.
Silver has been weighed down by weaker investor interest, concerns about rising coronavirus cases in China and worries about the impact of a regulatory crackdown in that country.
Silver may witness choppy trade as gold feels the impact of the Fed’s monetary tightening expectations and China’s economic outlook, however, gold prices will remain supported and this may keep a floor to silver, Kotak Securities said.
Silver holdings in iShares ETF were unchanged at 16,939.71 tonnes. The fund NAV is trading at a premium of 1.11 percent.
The US dollar index was down 0.16 percent at 92.46 against the major currencies in the afternoon session.
The spot gold-silver ratio was at 75.65 to 1, indicating that silver had outperformed gold.
MCX Bulldesk fell 30 points, or 0.21 percent, to 14,150 at 3.29 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 63,487 and a low of Rs 63,196 a kg. In the current series, the metal has touched a low of Rs 62,010 and a high of Rs 74,127.
Silver delivery for the December contract declined Rs 192, or 0.30 percent, to Rs 63,393 per kg at 3.31 pm with a business turnover of 10,931 lots. The same for March slipped Rs 180, or 0.28 percent, to Rs 64,221 with a turnover of 159 lots.
The value of December and March’s contracts traded, so far, is Rs 330.18 crore and Rs 6.33 crore, respectively.
The Silver Mini contract for November slipped Rs 167, or 0.26 percent, to Rs 63,658 on a business turnover of 22,649 lots.
“Prices needs to break above Rs 64,000 to continue rallies in near future. A direct drop below Rs 61,500 is a weak signal,” Geojit Financial Services said.
At 0942 (GMT), silver was 0.18 percent lower and was quoting at $23.84 an ounce in New York.
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