Silver prices declined to Rs 64,775 per kg on April 5 as participants increased their short positions as seen by the open interest. The precious metal had risen 0.44 percent last week on the MCX.
The white metal traded in the negative territory after a gap-down start in the afternoon session tracking a subdued trend in gold and stronger dollar.
The metal has been trading lower than 20, 50 and 100 days’ moving averages but higher than the 5 and 200 days’ moving average on the daily chart. The Relative Strength Index (RSI) is at 43.58 which indicates bearish momentum in prices.
Silver holdings in iShares ETF were unchanged at 17,888.36 tonnes. The fund NAV is trading at a premium of 2.53 percent.
The US dollar index trade modestly firm at 93.08, up 0.03 percent in the afternoon trade against the major cross.
The spot gold/silver ratio currently stands at 69.63 to 1 indicating that gold has outperformed silver.
MCX Bulldesk eased 25 points or 0.18 percent, at 14,153 at 15:01 on Monday. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited said, "Strong US dollar remains one of the biggest negative catalysts for precious metals. The US dollar is gaining ground against a basket of currencies and trying to settle back above leveleve. If this attempt is successful, it will head towards the next resistance at 93.20 which will be bearish for silver. If sustainsain below Rs 64,000 then it can go towards Rs 62,500 whereas resistance is at Rs 66,500 levels.”
In the futures market, silver for May delivery touched an intraday high of Rs 65,150 and a low of Rs 64,473 per kg on the MCX. So far in the current series, the precious metal has touched a low of Rs 59,826 and a high of Rs 75,501.
Silver delivery for the May contract fell Rs 314, or 0.48 percent to Rs 64,775 per kg at 15:06 hours with a business turnover of 10,204 lots. The same for the July contract slipped Rs 300, or 0.45 percent, to Rs 65,676 per kg with a turnover of 916 lots.
The value of May and July’s contracts traded so far is Rs 669.31 crore and Rs 13.22 crore, respectively.
Similarly, the Silver Mini contract for April edged lower Rs 294, or 0.45 percent at Rs 64,924 on a business turnover of 12,743 lots.
Geojit Financial Services Limited said, “A direct rise above $25.20 likely to continue rallies towards $26.50 or more. Else, expect a choppy with mild negative bias trading for the day. The major weakness is seen only a break of $23.80. MCX Silver Mini April has resistance at Rs 66,250 while support is at Rs 62,220.”
At 0942 (GMT), the precious metal was down 0.40 percent quoting at $24.84 an ounce in New York.
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