Silver prices surged at Rs 68,059 per kg on April 15 as participants increased their long positions as seen by the open interest. The precious metal had risen 0.4 percent yesterday on the COMEX.
The white metal extended gains after a gap-up start in the afternoon trade tracking firmness in gold and a weaker dollar.
The semi-precious metal has been trading higher than 5, 20, 50, 100 and 200 days’ moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 57.94 which indicates bullish momentum in prices.
Like gold, silver is also stuck in a broad range as market players try to assess Fed’s future monetary policy stance.
Silver holdings in iShares ETF stood at 17,880.11 tonnes, unchanged since April 5. The fund NAV is trading at a premium of 0.31 percent.
The US dollar index traded slightly lower at 91.57, down 0.12 percent in the afternoon trade against the major cross.
The spot gold/silver ratio currently stands at 68.23 to 1 indicating that silver has outperformed gold.
MCX Bulldesk rose 78 points or 0.53 percent, at 14,683 at 15:13. The index tracks the real-time performance of MCX Gold and MCX Silver futures.
Sriram Iyer, Senior Research at Reliance Securities said, “International silver prices are trading with gains this early Thursday afternoon trade, tracking the weakness of the dollar. Technically, LBMA Silver Spot immediate resistance is at $25.60, and trade above it will push prices up to $26.30 levels. Support is at $25.40 and $25.15 levels.”
Technically, MCX Silver May holds major hurdles at Rs 68,470 and Rs 68,860 and a break above them could push prices to Rs 70,000 level. Supports are at Rs 67,200 and Rs 66,790.
In the futures market, silver for May delivery touched an intraday high of Rs 68,170 and a low of Rs 67,705 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 gained Rs 421, or 0.62 percent to Rs 68,059 per kg at 15:15 hours with a business turnover of 9,253 lots. The same for the July contract soared Rs 460, or 0.67 percent, to Rs 69,097 per kg with a turnover of 1,067 lots.
The value of May and July’s contracts traded so far is Rs 894.17 crore and Rs 26.50 crore, respectively.
Similarly, the Silver Mini contract for April edged higher by Rs 382, or 0.56 percent at Rs 68,046 on a business turnover of 12,696 lots.
“The US Dollar index gained downside momentum after the release of US inflation reports and managed to settle below the support of 92.15. Currently, the US Dollar index is trying to settle below the next support which is located at 92. If the US Dollar index manages to settle below this level, it will gain additional downside momentum which would be bullish for silver and gold price today. Silver has downside support at Rs 67,000 whereas resistance is at Rs 68,000 levels,” said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.
The trend in US dollar and bond yields may continue to be a key price-determining factor for gold and silver and focus will be on economic data from major economies, central bank comments and development relating to the US infrastructure bill, virus outbreak, vaccine progress and geopolitical tensions, said Kotak Securities.
At 0953 (GMT), the precious metal was up 0.60 percent quoting at $25.67 an ounce in New York.
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