Silver futures rise 0.27% to Rs 62,071 per kg

Silver prices traded firm at Rs 62,071 per kg on October 27, tracking international prices, as participants increased their long positions. The precious metal traded lower in the afternoon session erasing morning gains.

Prices have been stuck in a range and this trend may continue until there is more clarity about the US stimulus plan.

Many European nations are reinforcing a lockdown and record high coronavirus cases in the US that dented risk appetite and shifted investor interest towards the safe-haven asset: gold.

US House Speaker Nancy Pelosi continued to hope for a possible deal with President Donald Trump’s administration over the relief fund. She also vowed to continue going after financial aid for the US economy, which was shackled by the pandemic, irrespective of the outcome of the US election.

The Dollar Index is trading marginally lower at 93.02 levels, down 0.02 percent against major currencies.

Silver holdings in iShares ETF were unchanged for the fourth day at 17,455.09 tonne.

Domestic silver futures on the Multi-Commodity Exchange (MCX) was trading with modest gains in this Tuesday afternoon trade.

MCX iCOMDEX Bullion Index was down 44.61 points, or 0.29 percent, at 15,558.10 at 15:06 hours. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

In the futures market, silver for December delivery touched an intraday high of Rs 62,580 and a low of Rs 61,800 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 49,415 and a high of Rs 79,723.

Silver delivery for December contract rose by Rs 165, or 0.27 percent to Rs 62,071 per kg at 15:10 hours on a business turnover of 15,189 lots. The same for March delivery edged lower by Rs 16, or 0.03 percent, to Rs 63,739 per kg on a turnover of 1,247 lots.

The value of December and March’s contracts traded so far is Rs 1,426.64 crore and Rs 16.91 crore, respectively.

The spot gold-to-silver ratio currently stands at 78.11 to 1, indicating that gold has outperformed silver. The general trend shows that the gold-to-silver ratio has been on a downward trend after hitting multi-year highs in March, with the while metal outperforming the yellow metal.

Sriram Iyer, Senior Research Analyst at Reliance Securities, said, “International silver prices were trading in the green on October 27 in Asian trade tracking firm base metals. However, the upside was capped amid a firm dollar.”

Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking, said, “As for today (October 27), traders can buy silver at Rs 62,000 levels, with a stop loss at Rs 61,300 levels, for a target of Rs 63,300 levels."

At 09:44 (GMT), the precious metal was marginally down (0.02 percent) at $24.41 an ounce in New York.