Silver futures rise 0.51% to Rs 62,322 per kg on weaker dollar ahead of US election

Silver prices edged higher to Rs 62,322 per kg on November 3 as participants increased their long positions, as seen by the open interest. The precious metal pared earlier losses and traded higher tracking weakness in the US dollar in the afternoon session.

Silver had risen 1.6 percent on the COMEX on November 2.

Prices trade firm tracking recovery in gold and industrial metals on the back of safer positioning for the United States election outcome. The US dollar index traded lower at 93.69 levels, down 0.47 percent against major currencies.

Silver holdings in iShares ETF remained unchanged for a second day at 17,411.69 tonnes.

MCX iCOMDEX Bullion Index gained 16.28 points, or 0.10 percent, at 15,657.19 at 3:08 pm. The index tracks the real-time performance of MCX Gold and MCX Silver futures.

Geojit Financial Services said spot silver prices need to stabilise above $24.60 per troy ounce to continue recovery momentum. Else, there is a chance of a continuation of weak sentiment for the day as well.

In the futures market, silver for December delivery touched an intraday high of Rs 62,400 and a low of Rs 61,612 per kg on the MCX index. 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 jumped Rs 315, or 0.51 percent to Rs 62,322 per kg at 3:10 pm with a business turnover of 14,387 lots. The same for the March contract soared Rs 355, or 0.56 percent, to Rs 63,958 per kg with a turnover of 2,012 lots.

The value of December and March’s contracts traded so far is Rs 1,610.26 crore and Rs 26.32 crore, respectively.

The spot gold/silver ratio currently stands at 78.43 to 1, indicating that silver has outperformed gold.

The trend in the US dollar and general risk sentiment may impact gold and silver prices on Tuesday and focus will be on the US election, said Kotak Securities.

MCX Silver will trade with positive bias for the session with support placed at Rs 61,400-61,085 whereas resistance is at Rs 62,650-63,100 area, said Motilal Oswal. The brokerage firm advised its clients to buy on dips for the day.

At 09:50 am GMT, the precious metal was up 1.30 percent quoting at $24.34 an ounce in New York.