Silver futures trade above Rs 45,000 per kg

Silver prices rose to Rs 45,244 per kg on May 15 as participants increased their long position as seen by the open interest. The metal also benefitted from a sharp rise in gold prices due to safe-haven buying.

Mexico, the world's largest producer of silver, deferred the restart of mining the metal to June 1.

The precious metal, which has been trading in the $14.80-15.85 range has broken out to trade above $16 per troy ounce mark.

In the futures market, silver for July delivery touched an intraday high of Rs 45,483 and a low of Rs 44,499 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 34,076 and a high of Rs 48,999.

Silver delivery for July contract gained Rs 1,174, or 2.66 percent, to Rs 43,309 per kg at 1445 hours with a business turnover of 7,994 lots. Silver's September contract was up Rs 1,217, or 2.73 percent, to Rs 45,800 per kg with a turnover of 257 lots.

The value of July and September contracts traded, so far, is Rs 1,143.22 crore and Rs 12.83 crore, respectively.

The spot gold/silver ratio currently stands at 106.97 to 1, which means the amount of silver required to buy an ounce of gold.

MCX Silver has support at Rs 43,636 whereas resistance is at Rs 45,551, according to Kotak Securities.

At 0921 GMT, the precious metal rose 2.75 percent quoting at $16.60 an ounce in New York.

Date: May 19