Silver prices surged to Rs 69,901 per kg on February 15 as participants increased their long positions as seen by the open interest. The precious metal rose 0.55 percent on the MCX in the previous week.
The white metal traded in the positive territory after a gap-up open in the afternoon session tracking weak dollar.
Silver holdings in iShares ETF fell by 63.56 tonnes to 19,549.49 tonnes, on increased outflow.
The US dollar index trades lower at 90.32 levels, down 0.17 percent in the afternoon trade.
MCX iCOMDEX Bullion Index was up 43.94 points, or up 0.29 percent, at 15,072.49 at 1450 hours. The index tracks the real-time performance of MCX gold and silver futures.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “International silver prices outperformed gold and was trading higher this Monday morning and early afternoon trade in Asia. Technically, LBMA silver spot could remain within the range of $27.20-27.85 for the rest of the session.”
Domestic silver prices were trading higher on February 15 morning and early afternoon trade, tracking overseas prices. "Technically, MCX March silver could remain within the range of Rs 69,400-70,400 for the rest of the session," he said.
In the futures market, March silver delivery touched an intraday high of Rs 70,067 and a low of Rs 69,300 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 gained Rs 784, or 1.13 percent, to Rs 69,901 per kg at 1453 hours with a business turnover of 13,083 lots. The same for the May contract jumped Rs 694, or 0.99 percent, to Rs 70,889 per kg with a turnover of 2,047 lots.
The value of March and May contracts traded, so far, is Rs 1,042.62 crore and Rs 32.13 crore.
The spot gold-silver ratio stands at 66.01 to 1, indicating that silver has outperformed gold.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited, said “MCX silver is trading above the key levels and as per my last week forecast price took the support of Rs 64,800-65,000 levels and many new buyers coming from this level, I am bullish on the silver market due to good industrial demand and week US GDP data."
At 0927 GMT, the precious metal was up 1.17 percent quoting at $27.64 an ounce in New York.
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