Silver prices rose to Rs 65,057 per kg on January 18 as participants increased their long positions as seen by the open interest. The precious metal had gained 0.83 percent last week on the MCX.
The white metal traded in the green after a flat-to-positive opening tracking gains in gold and positive factory output data from China.
The US dollar index traded higher at 90.91 levels, up 0.17 percent in the afternoon trade. The dollar has strengthened to its highest in four weeks against rival currencies.
Silver holdings in iShares ETF fell 28.9 tonnes to 17,219.67 tonnes on increased outflow.
MCX iCOMDEX Bullion Index was up 28.46 points, or up 0.19 percent, at 15,158.87 at 15:22. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International and domestic silver prices rebounded from the lows of the session this Monday morning and early afternoon trade in Asia, tracking gains in gold prices. Technically, LBMA Silver Spot is trading near $25.00 levels below which could see some sideways momentum in the range of $23.80-$26.20 levels in coming sessions.”
In the futures market, silver for March delivery touched an intraday high of Rs 65,703 and a low of Rs 64,880 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 54,386 and a high of Rs 79,980.
Silver delivery for March contract soared Rs 293, or 0.45 percent to Rs 65,057 per kg at 15:24 hours with a business turnover of 11,980 lots. The same for the May contract gained Rs 378, or 0.58 percent, to Rs 65,994 per kg with a turnover of 1,324 lots.
The value of March and May’s contracts traded so far is Rs 1,051.30 crore and Rs 27.23 crore, respectively.
The spot gold/silver ratio currently stands at 73.73 to 1 indicating that silver has outperformed gold.
“Technically, MCX Silver March above Rs 65,000 levels will continue its bullish momentum up to Rs 66,100-67,000 levels. Support is at Rs 64,600-63900 levels”, he said. Iyer advises his clients to buy March Silver near Rs 65,000-65,050 range with a stop loss at Rs 64,200 and for a target of Rs 66,500.
At 09:59 (GMT), the precious metal was up 0.16 percent quoting at $24.90 an ounce in New York.
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