Silver futures slide 1.77% to Rs 66,763 per kg in afternoon trade

Silver prices slid to Rs 66,763 per kg on August 20 as participants increased their short positions. The precious metal had lost 1.56 percent on August 19 on the COMEX.

US Federal Reserve warned that a recovery from the coronavirus pandemic-induced economic slump faced a highly uncertain path.

Silver holdings in iShares ETF remained unchanged at 17,933.27 tonne.

In the futures market, silver for September delivery touched an intraday high of Rs 67,998 and a low of Rs 66,401 per kg on the Multi-Commodity Exchange (MCX). So far in the current series, the precious metal has touched a low of Rs 41,558 and a high of Rs 77,949.

Silver futures for September delivery slipped Rs 1,200, or 1.77 percent, to Rs 66,763 per kg at 14:18 hours on a business turnover of 10,308 lots. The same for December delivery declined Rs 1,248, or 1.76 percent, to Rs 69,475 per kg on a turnover of 8,213 lots.

The value of September and December’s contracts traded so far is Rs 1,917.56 crore and Rs 123.74 crore, respectively.

The spot gold-to-silver ratio currently stands at 71.95 to 1, which means the amount of silver required to buy one ounce of gold.

Silver is expected to trade in a rangebound market having support at Rs 66,500 level and resistance at Rs 68,200 level, Motilal Oswal said.

At 08:50 (GMT), the precious metal was down 1.66 percent quoting at $26.88 an ounce in New York.